Major Step Forward for Volkswagen’s Battery Plant in St. Thomas

ST. THOMAS, Ont. – The Ontario government and Volkswagen’s Power Co SE celebrated a significant achievement on Tuesday as work progresses on Canada’s largest electric vehicle (EV) battery factory in St. Thomas – a $7-billion project that aims to transform the province’s automotive sector and create up to 3,000 direct jobs when operations kick off in 2027.

Concrete pouring has begun at the 350-acre site, signifying the start of large-scale construction on Power Co’s third and biggest EV gigafactory globally. Two Ontario-based companies, Magil Construction Canada Inc. and Steelcon, have landed major contracts to lead foundational and structural efforts. Magil Construction will manage the groundwork for three main buildings, which includes 500,000 square feet of formwork, 32,500 cubic metres of concrete, and nearly 4,850 tonnes of rebar; while Steelcon will take care of steel installation throughout the expansive complex.

Government Highlights Progress and Collaboration

During a ceremony celebrating this milestone, Ontario’s Minister of Economic Development, Job Creation and Trade, Vic Fedeli, stated that this project strengthens the province’s role as a global frontrunner in advanced manufacturing and electric mobility.

“At a time of increasing global uncertainty, our government continues to create the conditions for businesses and workers to succeed,” said Fedeli. “We commend Power Co for moving swiftly to bring this project to life and for recognizing the resilience of Ontario’s world-class workforce as well as our province’s strong leadership in the auto and advanced manufacturing sectors.”

The facility was first announced in March 2023 and stands as one of the largest single investments in Canadian manufacturing history. Once it opens its doors, it will employ up to 3,000 skilled workers while also supporting thousands more indirect jobs throughout the province’s EV supply chain. Additionally, this project involves considerable improvements to local infrastructure and utilities-highlighting its potential role as a driver for economic growth in southwestern Ontario.

A Global Battery Leader Establishes Roots in Canada

Frank Blome, CEO of Power Co SE, mentioned that this milestone is crucial toward building a North American manufacturing base for Volkswagen’s expanding EV lineup.

“Today marks a big milestone for Power Co Canada as we officially mark the beginning of construction on our third and largest EV gigafactory worldwide,” Blome said. “Electric vehicles are the future of the global automotive sector; we’re proud to spearhead such significant investment while positioning Canada at the forefront of innovative EV battery production. We aim to build a global battery champion with a strong footprint in Europe and North America.”

When completed, the St. Thomas plant will manufacture advanced battery cells for Volkswagen along with other carmakers-strengthening supply chains while decreasing dependence on overseas production. The facility also promotes Power Co’s objective of incorporating clean energy along with circular manufacturing practices into its operations.

St. Thomas Revives Its Manufacturing Heritage

Local leaders praised this project as an opportunity for transformation within St. Thomas-a community with rich automotive production history.

“The momentum we’re seeing here in St. Thomas is nothing short of remarkable,” said Rob Flack, MPP for Elgin-Middlesex-London. “This investment is driving real opportunity across our region by creating good jobs; building strong partnerships; restoring pride in Ontario’s manufacturing roots; The future of our province’s auto sector is being built right here in St. Thomas-and it will benefit local families for generations.”

Mayor Joe Prestonshared similar thoughts about how this project’s immediate impact can be felt within local economies: “The excitement in St. Thomas is palpable as we celebrate this monumental construction milestone,” he stated.“The St. Thomas gigafactory is rapidly coming alive , already delivering on its promise prosperity – supporting hundreds local jobs providing significant boost our economy right here community.”

Strengthening Ontario’s Auto Industry The Power Coplantisthelatestinaseriesofmajorautomotiveandbatteryinvestmentsin Ontario. Overthepastfouryears, theprovincehasattractedmorethan$46billioninnewcommitmentsacrossthe EVsupplychainfromcriticalmineralextractioninthenorthtoadvancedmanufacturinginthesouth.Ontario’sautoindustrycurrentsupportsover100000directjobsandhundredsofthousandsindirectrolesacrossmorethan700partssuppliers500tool-and-diemakersand400companiesinvolvedinconnectedandautonomousvehicletechnologies.

Volkswagen Groupheadquarteredin Germanyreported$528billion CADinsalesrevenuein2024underscoringitsglobalscaleandcapacitytodriveinnovationinthe EVsector. The St. Thomfacilityannouncedin March2025as Power Co’s North Americanhubwillbecentralto those efforts.

Securing Ontario ‘ s Placeinthee VFuture Withthe St. Thomprojectnowfirmlyunderway, Ontario ‘ sgovernment saysitremainsfocusedonensuringtheprovinceremainsthemostcompetitivejurisdictioninthe G7forautomotiveinvestment.

Inashiftinggloballandscape,”theprovincesaidinitrelease,”Ontariocontinuestakeboldanddecisiveactiontoprotectworkersunlocknewopportunitiesandreinfo rceprovince ‘spositionas themostcompetitivejurisdictioninthe G7toinvestexpandandgrow.”

The Power Coprojectrepresentsnotonlyacornerstoneof Canada’ sclean-techeconomybutalsoasymbolofrenewedconfidencein Ontario’ sindustrialfuture– afuturebuiltonelectrificationinnovationandhomegrown talent.

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