Volkswagen has pushed back the opening of its massive electric vehicle (EV) battery factory in St. Thomas, Ontario, by two years, with production now expected to begin in 2029 instead of the originally planned 2027.
The announcement came Thursday from PowerCo Canada, Volkswagen’s battery manufacturing subsidiary for the $7 billion facility.
According to PowerCo, the revised timeline will allow the factory to incorporate next-generation battery technology while giving Volkswagen greater flexibility to adjust production as EV demand evolves.
Joel Karlsberg, PowerCo Canada’s chief procurement officer, said the delay 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.”
Despite the later opening date, construction is continuing at the 370-acre site. Once fully operational, the factory is expected to employ approximately 3,000 workers and produce up to 90 GWh of battery cells annually, enough to supply approximately one million EVs.
The project was originally announced in 2023 with substantial government support, including up to $13.2 billion in federal incentives and $500 million from Ontario. VW broke ground on the project later that same year.
The delay adds Volkswagen to a growing list of automakers adjusting their Canadian EV manufacturing plans.
Honda previously postponed and subsequently cancelled its planned $15 billion Ontario EV investment, while General Motors halted production of its BrightDrop electric delivery vans at its CAMI Assembly plant in Ingersoll.
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