The EV battery “gigafactory” being constructed by Volkswagen’s subsidiary in St. Thomas, Ont., is now set to commence operations in 2029, which is a two-year delay from the initial schedule. PowerCo Canada, the company overseeing the project, disclosed this update as it announced the selection of Mississauga-based EllisDon Corporation as the general contractor for the factory’s construction. The decision to push back the start date to 2029 is attributed to the incorporation of advanced battery technology and the need for scalability in response to evolving market dynamics.
Originally planned for a 2027 launch, the $7-billion factory, supported by up to $13 billion in federal subsidies, was first unveiled in 2023. It was anticipated to generate 3,000 direct jobs and numerous indirect employment opportunities in the area. To accommodate the projected population growth in 2027, surrounding municipalities and the provincial government had initiated infrastructure enhancements, such as expanding sewer and road capacities.
Preceding the factory’s announcement, St. Thomas was granted permission by the province to annex land from the neighboring Central Elgin municipality to facilitate the development. Construction activities for the project commenced in October 2025 after PowerCo Canada awarded major contracts for the endeavor in August of the same year.
Despite the delay, St. Thomas Mayor Joe Preston remains optimistic about the project’s economic impact on the city. PowerCo has been actively recruiting local workers since August 2025, with approximately 500 individuals currently employed by the company in the vicinity. Mayor Preston highlighted the ongoing construction at the site and the presence of industries complementing battery production at the Yarmouth Yards industrial park to bolster his confidence in the venture.
The selection of EllisDon as the general contractor was welcomed by provincial officials, who emphasized the significant job creation potential associated with the project. However, the Ministry of Economic Development, Job Creation and Trade did not address the delay in its statement but expressed eagerness for Ontario to lead in innovative battery and automotive manufacturing with the gigafactory.
Conservative MP Andrew Lawton raised concerns over the delay, questioning Volkswagen’s commitment to the plant and urging government action to ensure the project’s progression. The evolving market conditions impacting Ontario’s auto sector have seen adjustments by various automakers to their EV production plans. General Motors and Honda have both made strategic decisions in response to fluctuating EV demand, leading to operational changes at their respective facilities in the region.
While uncertainties persist in the EV market landscape, recent data from Statistics Canada indicates a notable uptick in Canadian EV sales, underscoring the growing consumer interest in electric vehicles.
Original Source: [Link](https://www.cbc.ca/news/canada/london/st-thomas-ev-battery-plant-delay-9.7356821)