Production at the massive PowerCo EV battery gigafactory in St. Thomas has now been pushed back until some time in 2029, although the move is not being categorized as a step back.
The original plan called for a 2027 opening, with that being amended to second quarter of 2028.
The information was included in a media release issued this morning announcing that EllisDon Corporation will be the general contractor for the megaproject in Yarmouth Yards industrial park.
Construction includes the production-building shell, mechanical, electrical and plumbing installations, energy and utility systems, and supporting site services. Approximately 60 EllisDon workers are on site. That number is expected to ramp up to roughly 1,300 workers at peak, alongside additional personnel supporting parallel project activities.
Joel Karlsberg, Chief Procurement Officer, PowerCo Canada, noted in the release that “Today’s announcement is an important step forward for St. Thomas. Partnering with EllisDon allows us to keep construction moving while ensuring we retain the flexibility to scale the facility in line with market demand and long-term industry evolution.”
Max Mantha, President, Construction, EllisDon added, “This project will create opportunities for skilled tradespeople, local businesses, and communities across southwestern Ontario, and we look forward to working with PowerCo and our partners on this landmark development.”
St. Thomas Mayor Joe Preston said the choice of EllisDon is “a great thing.”
In a cautionary note, the release advised, “PowerCo is aligning the project’s timeline and product strategy with evolving market demand, technological advancements, and the Volkswagen Group’s long-term strategy.
St. Thomas is now expected to begin operations in 2029 to accommodate next-generation battery technology, while retaining the flexibility to scale over time as market conditions evolve.”
Preston remained upbeat, despite the adjustment to the project timeline.
Preston was asked if the delay will negatively impact homebuilders as they plan residential developments to house the thousands of new workers projected to move into the area.
Karlsberg assured that this is not a step back.
“The St. Thomas gigafactory remains a cornerstone of our North American strategy. We are continuing to build now while determining how and when the facility scales over time. 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.”
Written by Ian McCallum
