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Volkswagen delays production at Ontario electric vehicle battery plant until 2029

The delay reflects softer EV demand and lets PowerCo add next-generation battery technology as EllisDon takes over as general contractor.

  • PowerCo Canada announced Thursday that the opening of its electric vehicle battery 'gigafactory' in St. Thomas, Ont., is delayed by two years, with operations now scheduled to begin in 2029.
  • The Volkswagen subsidiary is aligning the $7 billion project with 'evolving market demand' and next-generation battery technology, retaining flexibility to scale production as market conditions change.
  • Originally announced in 2023, the facility promises up to $13 billion in federal subsidies alongside $700 million in federal capital costs and $500 million from Ontario, supporting about 3,000 direct jobs.
  • PowerCo selected Mississauga-based EllisDon Corp. on Thursday as general contractor to manage core infrastructure and structural work for the next construction phase.
  • Chief procurement officer Joel Karlsberg stated the delay is meant to 'protect our long-term investment' and support regional jobs following the 2025 start of foundation work.
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The Globe & MailThe Globe & Mail
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Volkswagen delays production at St. Thomas, Ont., EV plant

Opening pushed back two years to 2029

·Toronto, Canada
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iPolitics broke the news in Ottawa, Canada on Thursday, September 24, 2026.
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