Ontario officials are defending the delayed opening of Volkswagen’s massive EV battery plant in St. Thomas, saying construction progress remains a positive sign even as opposition parties question the impact on jobs and taxpayer support.
The comments come after PowerCo Canada, Volkswagen’s battery subsidiary, announced that operations at the $7 billion facility will now begin in 2029 instead of 2027. The delay, which we previously reported as the plant being pushed the plant’s opening to 2029, does not stop construction.
Ontario committed $500 million toward the project, while federal support includes $13.2 billion in investments, subsidies and tax credits tied to production.
Once fully operational, the facility is expected to employ about 3,000 people and produce up to 90 GWh of batteries annually.
Following the announcement, Premier Doug Ford convened his cabinet to “assess [the] progress” of the government’s “protect Ontario” promise as the province’s broader EV manufacturing strategy faces increased scrutiny.
Economic Development Minister Vic Fedeli, who has been closely associated with Ontario’s EV investment strategy, pushed back on concerns surrounding the timeline change. He described the delay as “extremely exciting” and pointed to the ongoing construction activity at the site.
“There are now shovels in the ground, a company has been hired and awarded contracts, there’s a $7 billion building and infrastructure being built there,” Fedeli said (via Global).
“To me, that’s nothing but good news.”
Fedeli said the province expects full construction to begin soon and that the facility remains on track to open in 2029. He also said provincial funding commitments are structured around future production, meaning payments are tied to batteries or vehicles being manufactured.
Ontario’s public accounts show Honda, NextStar, Toyota and General Motors received a combined $347 million during the 2025-26 fiscal year, while the City of St. Thomas received $65 million for infrastructure connections supporting the industrial park.
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