TORONTO – Premier Doug Ford and Economic Development Minister Vic Fedeli have reassured Ontarians about the postponed start date for the Volkswagen EV battery plant, now set for 2029.
“The announcement yesterday was really exciting. I know opinions vary on it, but work is underway, the company has secured the contract, and $7 billion in infrastructure is being developed there,” Fedeli mentioned.
“To me, that’s just great news.”
Power Co, Volkswagen’s branch responsible for the battery facility, disclosed on Thursday that they’re bringing in Canadian construction firm Ellis Don Corporation as the main contractor for the next phase of development in St. Thomas.
However, it was also disclosed that production at the factory won’t kick off until 2029 instead of next year as originally scheduled.
This adjustment aims to align with “evolving market demand, technological advancements, and Volkswagen Group’s long-term strategy,” according to the company.
Greg Mordue, an associate professor at Mc Master University’s Booth School of Engineering Practice and Technology in Hamilton, stated that this decision isn’t surprising given recent job cuts and other reductions at Volkswagen alongside decreasing demand in North America for EVs.
“The fact that St. Thomas isn’t facing closure is a positive aspect. Honestly, it could’ve gone either way,” Mordue said.
“What we need to figure out is this: Is Volkswagen genuinely pushing back actual production or are they just delaying a decision on how useful and necessary that plant will be?”
Ford believes that Volkswagen’s choice to delay rather than cancel shows “confidence in Ontario, confidence in our government and our people.”
“I understand they’ve decided to delay things, but when you enter into a (large contract with Ellis Don), that’s huge,” Ford remarked.
“I’m not worried. What would make me anxious is if they announced they weren’t building anything. But they are moving forward with construction on what will be a massive facility … I see it as good news.”
On the other hand, opposition parties claim the government is trying to put a positive spin on troubling news.
“You know that saying about not ‘peeing in my ear’ while claiming it’s raining?” Liberal MPP Stephanie Smyth said while accusing Fedeli and Ford of “celebrating” concerning developments.
“It seems like we can see what’s coming. There’s a pattern here that’s repeating itself.”
The St. Thomas battery plant is under construction after Volkswagen received $500 million from the province to assist with costs related to building this enormous factory which could become one of the largest globally if completed.
Other EV initiatives in Ontario have faced delays before being halted indefinitely despite promises of government funding or other incentives like tax credits.
Honda’s planned EV assembly and battery plant in Alliston faced a two-year delay before being completely suspended. A similar situation occurred with an Umicore battery plant proposed for Loyalist Township.
Yet in both instances, little to no government funds were disbursed to those companies.
Official Opposition Leader Marit Stiles emphasized that with so much taxpayer money potentially at stake if this project gets canceled; clarity regarding any “strings attached” to the deal with Volkswagen is crucial for accountability.
Fedeli responded by explaining each subsidy agreement with automakers has its own specifics; generally speaking, funds are released incrementally as companies reach designated milestones throughout their projects’ progression.
(ahale)
related stories
Source link
