Ontario Construction News staff writer
Construction is progressing on Volkswagen Group’s $7-billion electric vehicle battery plant in St. Thomas, but the launch date has been pushed back by around two years to 2029.
Power Co Canada, the battery division of Volkswagen Group, announced Thursday that it has appointed Ellis Don as the general contractor for the next construction phase of this project, which was initially unveiled in March 2023 and broke ground in 2025.
The plant was originally slated to start operations in 2027. It will become Canada’s largest EV battery facility and is anticipated to create approximately 3,000 jobs when it is fully operational.
Construction is now entering core infrastructure and structural work stages, which include building the production shell, installing mechanical, electrical and plumbing systems, energy and utility setups, as well as support services for the site.
“Partnering with Ellis Don allows us to keep construction moving while ensuring we retain the flexibility to scale the facility in line with market demand and long-term industry evolution,” said Joel Karlsberg, chief procurement officer at Power Co Canada.
Currently about 60 Ellis Don workers are on site, with expectations for the workforce to increase to roughly 1,300 during peak times along with additional personnel supporting other project activities.
Power Co explained that this updated timeline relates to shifts in market demand, advancements in battery technology and Volkswagen Group’s overarching strategy.
“St. Thomas is now expected to begin operations in 2029 to accommodate next-generation battery technology while retaining flexibility for scaling over time as market conditions evolve,” stated the company.
This project ranks as Power Co’s third-largest globally and aims to bolster Volkswagen’s North American battery manufacturing strategy.
“The Power Co facility represents a transformative investment in Canada’s industrial future, and Ellis Don is proud to play a role in its delivery,” said Max Mantha, president of Construction at Ellis Don. “As a Canadian-headquartered employee-owned company, we are committed to building the infrastructure that will help support Canada’s growing electric vehicle and battery manufacturing sector. This project will create opportunities for skilled tradespeople, local businesses, and communities across southwestern Ontario; we look forward to collaborating with Power Co and our partners on this landmark development.”
Despite the adjusted opening date, Power Co confirmed that construction would proceed while determining how and when they would scale up the facility.
“The St. Thomas gigafactory remains a cornerstone of our North American strategy,” added Karlsberg. “We are continuing to build now while figuring out how and when the facility scales over time. This is about getting the pacing right-not stepping back-to protect our long-term investment while supporting regional jobs and positioning Canada, Ontario, and St. Thomas for success in a dynamic market.”
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