Construction is officially underway in St. Thomas, Ontario, where PowerCo Canada, a subsidiary of the Volkswagen Group, is building what will become the country’s largest electric vehicle battery plant. With a $7 billion investment, crews have started pouring concrete for three major buildings as the project moves from planning into full construction. The plant will produce advanced battery cell technology by 2027.
The massive facility covers about 350 acres in southwestern Ontario. Once completed, it will be one of PowerCo’s most advanced sites worldwide. The St. Thomas factory will be the Volkswagen Group’s largest cell factory to date, with the potential to produce up to 90 gigawatt-hours of battery cells every year in its final phase.
Local Ontario-based companies are playing a big part in the build. Early work includes pouring more than 32,000 cubic metres of concrete and placing nearly 5,000 metric tonnes of rebar. Once the foundation work wraps up, construction will shift to steel framing and structural development for the three main buildings that will anchor the site.
The project is expected to create around 3,000 direct jobs and thousands more across the supply chain, including in construction, materials, and logistics. The St. Thomas area is already seeing a boost in local business activity as suppliers and contractors gear up for the long-term work ahead.
Local leaders say the benefits will reach far beyond the jobsite. “I’m excited that Volkswagen has selected St. Thomas to be a key part of the plan for North America as a hub for building the cars of the future,” said Joe Preston, Mayor of the City of St. Thomas. “This investment by PowerCo is not only a game changer for Ontario’s EV vision, but also a huge boost to our community and the hardworking families that call St. Thomas and Elgin County home. Our region will surely prosper from this for decades to come.”
For Canada, this marks a major step in becoming a global player in electric vehicle manufacturing. Most EV batteries are currently made overseas, but this plant will help Canada strengthen its own supply chain for clean-energy technology. It also supports the federal government’s plan to build a more sustainable and competitive economy.
Former Prime Minister Justin Trudeau described the project as a win for workers, for the community, and for the economy. “When we talk about our made-in-Canada plan, we’re talking about creating good, middle-class jobs now and into the future. We’re talking about clean air for our kids and grandkids, and we’re talking about a strong economy that works for all Canadians,” he said.
PowerCo says it is fully on track and committed to responsible growth. “We are now ready for the next stage on our path to the sustainable and responsible production of battery cells,” said Sebastian Wolf, COO of PowerCo SE. “PowerCo will be a reliable partner for the people in St. Thomas and Ontario.”
St. Thomas is one to watch for leading Canada’s clean-energy future. As construction continues on Canada’s largest battery plant expect hiring to ramp up in the coming years with the plant becoming one of the most important EV manufacturing hubs in North America.
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