Volkswagen’s PowerCo Delays St. Thomas Battery Plant Opening to 2029
PowerCo Canada has pushed back the start of operations for its $7 billion electric vehicle battery factory in St. Thomas, Ontario, from 2027 to 2029. The company cites next-generation technology and market conditions as reasons for the delay, while local officials remain confident despite criticism from a Conservative MP regarding federal subsidies.
PowerCo Canada, a subsidiary of Volkswagen, announced that its planned electric vehicle battery gigafactory in St. Thomas, Ontario, will now begin operations in 2029. This revised timeline is two years later than the originally scheduled opening in 2027.
The announcement coincided with the selection of Mississauga-based EllisDon Corporation as the general contractor for the facility's construction. PowerCo stated that the new schedule allows the plant to accommodate next-generation battery technology and provides flexibility to scale production based on evolving market conditions.
The $7 billion project was first unveiled in 2023 and includes a commitment of up to $13 billion in federal government subsidies. Construction on the site began in October 2025, following the awarding of major contracts in August 2025.
Local reactions to the delay have been mixed. St. Thomas Mayor Joe Preston expressed confidence in the project, pointing to the fact that PowerCo currently employs roughly 500 people in the area. However, Conservative MP Andrew Lawton criticized the shift, questioning Volkswagen’s commitment to the region. Lawton noted that the substantial federal subsidies were tied to promises of creating 3,000 direct jobs.
The delay also impacts regional planning. Surrounding municipalities and the provincial government had undertaken infrastructure projects for sewer and road capacity in anticipation of a population boom expected to occur by 2027.