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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.