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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.
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The Toronto StarThe Toronto Star
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Volkswagen delays production at Ontario electric vehicle battery plant until 2029

SAINT THOMAS - The opening of a massive Volkswagen electric vehicle battery plant in southwestern Ontario has been pushed back two years until 2029.

·Toronto, Canada
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Winnipeg Free Press broke the news in Winnipeg, Canada on Thursday, September 24, 2026.
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