SAINT THOMAS – The launch of a large Volkswagen electric vehicle battery plant in southwestern Ontario has been postponed by two years, now set for 2029.
Power Co Canada, a branch of the German carmaker, announced that it is pushing back production at the $7-billion facility in St. Thomas, Ont., to better align the project’s schedule and product plans with changing market needs, technological progress, and the long-term strategy of the Volkswagen Group.
This revised timeline will facilitate next-generation battery technology while allowing for adaptability as market conditions change over time.
Joel Karlsberg, chief procurement officer for Power Co, mentioned that this decision is “about getting the pacing right … to protect our long-term investment (and) support regional jobs.”
On Thursday, Power Co also revealed that it has chosen Canadian construction firm Ellis Don Corp. as the general contractor for building the factory as it enters its next phase focused on essential infrastructure and structural work.
The plant was first announced in 2023, with the federal government pledging $700 million in initial capital costs to construct the factory and Ontario contributing $500 million.
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