Ontario Construction Report staff writer
Construction is moving ahead on Volkswagen Group’s $7-billion electric-vehicle battery plant in St. Thomas, but the facility’s opening has been pushed back about two years to 2029.
PowerCo Canada, Volkswagen Group’s battery company, said Thursday it has selected EllisDon as general contractor for the next phase of construction at the project, which was first announced in March 2023 and broke ground in 2025.
The facility was initially expected to begin operations in 2027. It is being developed as Canada’s largest EV battery plant and is expected to employ about 3,000 workers when fully operational.
Construction is now moving into core infrastructure and structural work, including the production-building shell, mechanical, electrical and plumbing installations, energy and utility systems and supporting site services.
“Partnering with EllisDon allows us to keep construction moving while ensuring we retain the flexibility to scale the facility in line with market demand and long-term industry evolution,” said Joel Karlsberg, chief procurement officer, PowerCo Canada.
About 60 EllisDon workers are currently on site, with the workforce expected to increase to roughly 1,300 at peak, alongside additional personnel supporting parallel project activities.
PowerCo said the revised schedule is tied to changes in market demand, advances in battery technology and the Volkswagen Group’s long-term strategy.
“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,” the company said.
The project is PowerCo’s third-largest globally and is designed to support Volkswagen’s North American battery manufacturing strategy.
“The PowerCo facility represents a transformative investment in Canada’s industrial future, and EllisDon is proud to play a role in its delivery,” said Max Mantha, president, Construction, EllisDon. “As a Canadian-headquartered, employee-owned company, we are committed to building the infrastructure that will help support Canada’s growing electric vehicle and battery manufacturing sector. This project will create opportunities for skilled tradespeople, local businesses, and communities across southwestern Ontario, and we look forward to working with PowerCo and our partners on this landmark development.”
Despite the revised opening date, PowerCo said construction will continue as the company determines how and when the facility will be scaled.
“The St. Thomas gigafactory remains a cornerstone of our North American strategy,” added Karlsberg. “We are continuing to build now while determining how and when the facility scales over time. This is about getting the pacing right—not stepping back—to protect our long-term investment, support regional jobs, and position Canada, Ontario, and St. Thomas to benefit in a dynamic and evolving market.”