Canada’s largest EV battery gigafactory is getting closer to reality in St. Thomas.
On Thursday, the Volkswagen subsidiary Power Co Canada announced it had awarded two significant construction contracts for the project ahead of initial construction, which is set to start at the site in the coming weeks.
The contracts, given to Steelcon Group of Companies and Magil Construction Canada Inc., cover structural steel and foundation work for the plant’s first cell production building and other essential works, according to Power Co.
Once fully operational, the facility is expected to cover up to 185,000 square metres, create around 3,000 jobs, and generate as many as 30,000 indirect jobs. Initial production is anticipated to begin in 2027.
In a statement, Power Co SE’s CEO, Frank Blome, mentioned that awarding these contracts 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 uncertain times for both the auto sector and the EV market due to U. S.-related tariffs on auto imports and changes in federal EV incentives in the U. S.
Federal incentives in Canada ran out of funding early this year; however, Ottawa has stated plans to reintroduce consumer EV incentives down the line.
On Thursday, Ontario’s financial watchdog indicated that U. S. tariffs played a part in shedding 38,000 jobs within the province during Q2 of 2025. Nearly 30,000 were from manufacturing roles.
The two contracts will lead to hundreds of construction jobs being created; Steelcon plans to employ over 500 workers from both their teams and local areas. Magil will be responsible for building foundations for three buildings covering almost 79,000 square metres, according to Power Co.
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When fully operational in northeast St. Thomas, it’s anticipated that 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 spree aimed at filling hundreds of positions 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 on North American soil.
Batteries produced at St. Thomas will be sent out for use at vehicle assembly plants across the U. S.
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