Major Volkswagen Battery Factory Under Construction in St. Thomas

A crucial part of St. Thomas’s economic future is now taking shape in the city’s northeast area, where foundation work has commenced on what will become Canada’s largest electric vehicle battery gigafactory.

Officials from the Volkswagen subsidiary PowerCo Canada announced the “significant milestone,” on Tuesday, stating that Magill Development Canada had begun pouring the foundations for three major structures covering about 79,000 square meters (850,000 square feet).

“Electric vehicles are the future of the global automotive industry, and we’re proud to lead such an important investment, while placing Canada at the forefront of innovative EV battery production,” Frank Blome, CEO of PowerCo SE, said in a statement.

PowerCo awarded contracts to Magil and Steelcon for work on the gigafactory’s first cell manufacturing building and essential works back in August. Steelcon will begin operations at the site “in the coming weeks,” as stated by the company on Tuesday.

This massive construction project comes with some impressive figures:

There will be more than 500,00 square feet of formwork-the mold into which concrete is poured. Over 32,000 cubic meters will be poured for the foundation. A total of 4,850 metric tonnes of rebar will be utilized.

Watching the foundation being poured was an “extremely exciting moment” for both Magil and its team based in London, said Paul Henke, president of Magil.

The St. Thomas facility will be PowerCo’s third and largest EV battery gigafactory. Photos released by PowerCo indicate that foundation work has been ongoing at the site for several weeks.

Once fully operational in northeast St. Thomas, it’s expected that this gigafactory will employ around 3,000 people and cover up to 185,000 square meters. (Volkswagen AG)

Initial battery cell production is anticipated to kick off at this multi-billion-dollar plant in 2027. When completely operational, it’s expected to span roughly 185,000 square meters and provide jobs for about 3,000 individuals while helping generate another 30,000 indirect jobs.

PowerCo has been working hard to fill hundreds of positions at this factory and reports having received over 100 applications since launching a hiring campaign in August.

The construction phase itself is also set to create hundreds of jobs; Steelcon expects to hire a team exceeding 500 individuals.

With an annual output capacity reaching up to 90 GWh, this facility will produce batteries sufficient for nearly a million vehicles per year destined for car assembly plants in the U.S.

Volkswagen is investing around $7 billion into this plant while senior government officials have promised significant financial incentives totaling over $16 billion across ten years from federal sources along with about $700 million in capital grants.

“Ontario has some of the best workers globally; PowerCo’s once-in-a-lifetime investment proves we have everything needed right here to build one of the most competitive economies within G7,” remarked Ontario Premier Doug Ford in a statement.

The development on this gigafactory takes place during uncertain times for Canada’s auto manufacturing sector and EV market amid persistent U.S. tariff challenges along with two recent bombshell announcements from GM and Stellantis.

Last week GM indicated it would halt production of its BrightDrop electric delivery van at CAMI Assembly in Ingersoll due to slow sales impacting approximately 1,200 employees at that facility-a key economic contributor for that area.

A few weeks ago Stellantis revealed plans to shift intended Jeep Compass production from its Brampton plant to an idle facility located in Illinois as part of a $13 billion US strategy aimed at expanding domestic manufacturing capabilities stateside.
WATCH | Ottawa reacts against GM & Stellantis:

Feds push back against GM & Stellantis by limiting tariff-free vehicle imports from U.S..

The federal government plans to cap how many tariff-exempt vehicles General Motors and Stellantis can import from America for sale here-an action meant to pressure both companies into reinvesting their efforts within Canadian manufacturing.

Canada granted Stellantis nearly $105 million towards upgrading two Ontario plants including Brampton; Ottawa says they are currently reviewing whether there was any breach regarding those agreements made by automakers.
The government also intends on restricting how many cars either entity can import duty-free into Canada.

GM mentioned they’re evaluating other options concerning their CAMI operation established over three decades ago while Stellantis maintains Canada remains vital importance along with intentions concerning Brampton yet reiterated they’ll share specifics after further talks with Canadian authorities.
Blome commented that PowerCo aims “to create a global leader within battery solutions possessing strong presences throughout both Europe & North America.”

In another statement Melanie Joly-Canada’s Minister responsible innovation science trade remarked how opening this plant would strengthen domestic electric vehicle storage capabilities generating well-paying positions contributing benefits toward not only Ontario but encompassing wider regional effects across steelmaking aluminum sectors too.

[Source](https://www.cbc.ca/news/canada/london/powerco-volkswagen-factory-st-thomas-ontario-9.6955787)