PowerCo targets 2029 opening for St. Thomas plant
PowerCo Canada, a subsidiary of car manufacturer Volkswagen, made the announcement in a statement on Sept. 24, marking what it called a “key milestone as the project advances into its next phase of construction.”
“We’ve been hoping for quite a while that they would sign on a general contractor as big and as popular as EllisDon is in being able to handle large projects like this,” said St. Thomas Mayor Joe Preston, in an interview with The Express.
Elgin-St. Thomas-London South MP Andrew Lawton said most people he has spoken to are “not surprised” about the delay.
“When people drive by the site, as I do all the time, it’s clear that there is construction going on. But, it was also pretty clear that this was not a facility that was going to be ready for operation in 2027,” MP Lawton told The Express.
MP Lawton said he has asked both Prime Minister Mark Carney and Industry Minister Mélanie Joly how the federal government is protecting about $13 billion in federal subsidies and creating “the jobs that were promised.” As of publication, he had not received a response.
MP Lawton said the delay did not mean residents should fear the project would fall through.
“Volkswagen says it is still committed to seeing this through. Construction is still happening. I’m not hitting the alarm button on this,” MP Lawton said. “I’m just saying that it would be important when so much is invested in this project to have a bit more accountability from the government as far as what the deals are.”
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Officials wrote that EllisDon’s appointment would allow on-site work to continue, building on steady progress since breaking ground in 2025, with work now moving into core infrastructure and structural phases that will support future production.
Joel Karlsberg, chief procurement officer for PowerCo Canada, said the announcement was an “important step forward” for St. Thomas. “Partnering with EllisDon allows us to keep construction moving while ensuring we retain flexibility to scale the facility in line with market demand and long-term industry evolution.”
Initial work at the site focused on core building structures and supporting infrastructure, including the production-building shell, mechanical, electrical and plumbing installations, energy and utility systems and supporting site services.
About 60 EllisDon workers were on-site as of publication, but officials projected that number could rise to roughly 1,300 workers at peak construction.
“The PowerCo facility represents a transformative investment in Canada’s industrial future, and EllisDon is proud to play a role in its delivery,” wrote Max Mantha, president of construction for EllisDon.
“As a Canadian-headquartered, employee-owned company, we are committed to building the infrastructure that will help support Canada’s growing electric vehicle and battery manufacturing sector,” he noted.
In parallel, PowerCo said it was aligning the project’s timeline and product strategy with evolving market demand, advancements in technology and Volkswagen’s long-term strategy.
Officials said the St. Thomas plant is now expected to begin operations in 2029 to accommodate what they called “next-generation battery technology, while retaining the flexibility to scale over time as market conditions evolve.”
“The St. Thomas gigafactory remains a cornerstone of our North American strategy,” said Karlsberg. “We are continuing to build now while determining how and when the facility scales over time.”
“The new general contractor has extended the date to finish. And we’ll just say, ‘Go hard, do what you can do,’. This project is effectively already a large part done and will continue on for a couple more years,” Mayor Preston said.
“This is about getting the pacing right—not stepping back—to protect our long-term investment, support regional jobs, and position Canada, Ontario, and St. Thomas to benefit in a dynamic and evolving market,” Karlsberg said.
