Enormous $7 billion 'gigafactory' in Ontario just got delayed by years

The opening of a sprawling $7 billion Volkswagen "gigafactory" under construction in St. Thomas, Ont., has been delayed by approximately two years.

The new Electric Vehicle Battery Cell Plant being constructed for Volkswagen Group subsidiary PowerCo has been underway since 2025 and was initially targeting a 2027 opening. 

First announced in March 2023, it is being billed as Canada's largest electric vehicle battery plant and PowerCo's third-largest project globally.

On Thursday, PowerCo revealed that the massive factory — which will employ 3,000 workers once complete — will no longer meet that opening timeline and is now projected to become operational in 2029.

PowerCo announced in a press release that it had selected construction firm EllisDon Corporation as general contractor for the next phase of the facility's build-out.

The Volkswagen subsidiary stated that, "In parallel, 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," reads the press release. 

Photo by PowerCo.

Joel Karlsberg, Chief Procurement Officer of PowerCo Canada, maintains that "The St. Thomas gigafactory remains a cornerstone of our North American strategy," adding that the company is "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," said Karlsberg.