Volkswagen subsidiary delays opening of EV battery plant
Volkswagen subsidiary PowerCo has delayed the opening of its $7-billion EV battery plant in Ontario, Canada, from 2027 to 2029. The company cites a need to accommodate next-generation technology and adapt to slowing global EV demand.
Why it matters
The delay reflects broader industry challenges as automakers recalibrate their electrification strategies in response to cooling consumer demand and shifting government incentives.
PowerCo’s planned EV battery plant in St. Thomas, Ont., shown in a rendering, was announced in 2023. Supplied/PowerCo
A subsidiary of Volkswagen Group has delayed by two years the opening of its electric-vehicle battery plant in Ontario, in another setback to Canada’s hopes of creating an EV manufacturing sector.
PowerCo Canada said in a press release on Thursday that the battery plant in St. Thomas, Ont., will begin operation in 2029 rather than the 2027 target set when the $7-billion project was announced in 2023. The company said at the time the project will be its largest battery plant and employ as many as 3,000 people.
“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,” PowerCo said in a statement on Thursday, describing the project as a “demand-aligned.”
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