The firm planning a large battery factory in southwestern Ontario has announced that operations are now set to begin in 2029, which is two years later than originally intended.
Power Co, established by the car manufacturer Volkswagen, is in the process of constructing a gigafactory in St. Thomas, Ont., aimed at producing batteries for its expanding electric vehicle lineup.
On Thursday, the company revealed it has hired Ellis Don Corporation as the general contractor for this new facility.
In a news release, Power Co mentioned that this appointment “enables work on-site to continue building on steady progress since groundbreaking in 2025.”
“Construction is now moving into core infrastructure and structural phases that will support future production.”
Get breaking National news
Get breaking Canada news delivered to your inbox as it happens so you won’t miss a trending story.
A spokesperson for Power Co stated in an email to Global News that this phased approach isn’t about taking a step back but about making sure every phase of the project is done efficiently and effectively.
Story continues below
“It preserves flexibility while supporting skilled trades, regional suppliers and economic activity in Southwestern Ontario,” the spokesperson added.
The first stage of development includes essential building structures and site-wide infrastructure, according to the press release. This covers mechanical, electrical and plumbing setups, energy and utility systems, along with supporting site services.
The company noted that around 60 Ellis Don workers are currently on-site, with numbers expected to peak at 1,300 workers.
More on Economy More videos
The federal government previously stated that this first battery plant outside of Europe will generate 3,000 direct jobs and another 30,000 indirect jobs while contributing $200 billion to Canada’s economy over the next few decades.
In August 2025, Power Co announced it had given out two construction contracts related to work on this new facility. Construction kicked off in October.
The battery plant is being developed amid tariffs and shifting market conditions. Over the last year, Honda has delayed plans for an EV plant in Canada while GM paused production of its electric vans.
This comes after tariffs were imposed by the Trump administration on Canadian vehicles alongside cuts to electric vehicle subsidies.
Power Co asserted that the project’s timeline aligns with “evolving market demands, technological advancements and Volkswagen Group’s long-term strategy.”
& copy 2026 Global News, a division of Corus Entertainment Inc.
Source link
