Canada’s largest EV battery gigafactory is getting closer to reality in St. Thomas.
On Thursday, the Volkswagen subsidiary Power Co Canada revealed that it had granted two significant construction contracts for the project, with initial work set to kick off at the site in the coming weeks.
The contracts were awarded to Steelcon Group of Companies and Magil Construction Canada Inc., covering structural steel and foundation work for the plant’s first cell production building and essential tasks, according to Power Co.
Once fully operational, the facility is expected to cover up to 185,000 square metres, create around 3,000 jobs directly, and generate as many as 30,000 indirect jobs. Initial production is anticipated to start in 2027.
In a statement, Power Co SE’s CEO Frank Blome noted that awarding these two contracts has moved the multi-billion-dollar gigafactory into its next stage.
“The St. Thomas gigafactory is a cornerstone in our ambition to build a global cell company with strong roots in Europe and North America, safeguarding direct access to one of the key technologies of the 21st century,” he said.
“By leveraging innovative and skilled local expertise, St. Thomas will strengthen Canada’s position in the global EV battery manufacturing industry.”
This announcement comes during a time of uncertainty for both the auto sector and EV market due to auto-related U. S. tariffs and changes in federal EV incentives in the U. S.
Federal incentives in Canada ran out early this year; however, Ottawa has indicated plans to reintroduce consumer EV incentives down the line.
On Thursday, Ontario’s financial watchdog attributed U. S. tariffs as partly responsible for shedding 38,000 jobs in the province during Q2 of 2025-almost 30,000 from manufacturing alone.
Both contracts are set to create hundreds of construction jobs; Steelcon plans on using over 500 workers from both local areas and beyond. Magil will be responsible for constructing foundations for three buildings covering nearly 79,000 square metres according to Power Co.
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When fully operational in northeast St. Thomas, it’s anticipated the gigafactory will employ roughly 3,000 people and span up to 185,000 square metres. (Volkswagen AG)
Earlier this month, Power Co kicked off a hiring push aimed at filling hundreds of roles at the factory including chemists, IT professionals, and engineers.
Power Co is investing $7 billion into this gigafactory which will have an annual production capacity reaching up to 90 GWh making it Volkswagen’s first EV battery plant located in North America.
Batteries produced at St. Thomas will supply vehicle assembly plants across the U. S.
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