Volkswagen subsidiary delays opening of $7B St. Thomas, Ont., battery plant to 2029
Volkswagen's subsidiary, PowerCo Canada, has delayed the opening of its $7 billion St. Thomas, Ontario, EV battery plant from 2027 to 2029. The company cites the need to accommodate next-generation battery technology and maintain operational flexibility as market conditions evolve.
Why it matters
The delay impacts a major government-subsidized economic project intended to anchor Canada's EV supply chain and create thousands of jobs.
PowerCo Canada made the announcement in a news release about hiring Mississauga, Ont.-based EllisDon Corporation as the general contractor for construction of the factory.
"St. Thomas is now expected to begin operations in 2029 to accommodate next-generation battery technology, while retaining the flexibility to scale over time as market conditions evolve," said a news release .
PowerCo declined to make a spokesperson available for an interview with CBC News about the delay.
Volkswagen to open its first North American EV battery plant in St. Thomas, Ont.
Originally scheduled for a 2027 opening, the $7-billion factory — with a promise of up to $13 billion in subsidies from the federal government — was first announced in 2023. It was estimated it would result in the creation of 3,000 direct jobs and tens of thousands of indirect jobs in the region.
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