Ontario Battery Plant Delayed
Volkswagen delays its $7 billion Ontario battery plant production start to 2029
Anonymous
Volkswagen’s PowerCo Canada has delayed the start of production at its $7 billion electric-vehicle battery plant in St. Thomas, Ontario, from 2027 to 2029. The company says the revised schedule will let it incorporate next-generation battery technology and adjust production plans to changing EV demand, while protecting the long-term investment and supporting regional jobs. Construction is continuing, with Canadian firm EllisDon named general contractor for the next phase of infrastructure and structural work. Once operational, the plant is expected to employ about 3,000 people and produce up to 90 gigawatt-hours of battery cells annually; PowerCo says the site remains central to its North American strategy.
Key Points
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The project has received significant government support: Ontario offered $500 million in incentives, while the federal government committed up to $13.2 billion in investments, subsidies and tax credits tied to output.
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The factory is planned for a 370-acre site and, at full capacity, could supply batteries for approximately one million electric vehicles annually.
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The next construction phase is expected to include the production facility’s shell, mechanical, electrical and plumbing systems, and energy and utility infrastructure.
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The delay comes amid other changes to Canadian EV manufacturing plans: Honda postponed and later cancelled a planned Ontario EV investment, while General Motors halted production of BrightDrop electric delivery vans at its Ingersoll plant.
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