Volkswagen’s PowerCo Delays St. Thomas Battery Plant Opening to 2029
PowerCo Canada, a subsidiary of Volkswagen Group, has announced a two-year delay in the opening of its $7-billion electric-vehicle battery plant in St. Thomas, Ontario. The operational start date has moved from 2027 to 2029. While provincial leaders cite ongoing construction and signed contracts as signs of commitment, opposition figures argue the delay reflects a failing EV strategy.
PowerCo Canada, a subsidiary of Volkswagen Group, has announced that the opening of its electric-vehicle battery plant in St. Thomas, Ontario, will be delayed by two years. The target operation date for the facility has shifted from 2027 to 2029.
The company stated that the phased approach allows time to accommodate next-generation battery technology and provides flexibility to scale production based on evolving market demand. The $7-billion project was originally expected to employ up to 3,000 people.
Despite the delay, construction continues. Canadian firm EllisDon Corp. has been named as the general contractor for the next phase of work at the site. St. Thomas Mayor Joe Preston reported that approximately one billion dollars' worth of construction has already occurred, with much of the building structure currently in place.
Political reactions to the announcement have been divided. Ontario Premier Doug Ford expressed confidence in the project's continuation, citing the massive $1.4-billion funding agreement between Ottawa and the Ontario government as proof of continued commitment. Economic Development Minister Vic Fedeli also supported the view that the project remains viable due to signed contracts and ongoing construction activities.
In contrast, Ontario NDP Leader Marit Stiles criticized the delay, describing it as evidence that the province's EV strategy is "in tatters." This decision follows several other cancellations or delays in Canadian EV projects, including Honda suspending a $15-billion Ontario project, Northvolt's bankruptcy near Montreal, and Stellantis walking away from a Windsor joint venture.