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Volkswagen Delays Production at Ontario Electric Vehicle Battery Plant Until 2029
PowerCo Canada says the later opening will let the $7 billion project add next-generation battery technology and align with market demand, officials said.
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 aims to align the $7 billion project's timeline with 'evolving market demand' and next-generation battery technology, retaining flexibility to scale production as conditions evolve.
Originally announced in 2023, the facility promises up to $13 billion in federal subsidies, $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 oversee core infrastructure and structural work during the factory's next construction phase.
Chief procurement officer Joel Karlsberg said the delay is meant to "protect our long-term investment" and support regional jobs, following the start of foundation work in October 2025.