Concrete is now being poured at the site of Volkswagen’s massive PowerCo battery factory in St. Thomas, Ontario — marking the first major construction milestone since announcing they were ready to break ground in late 2023, for what’s set to become the largest electric vehicle (EV) battery plant in Canada.
Spanning 350 acres, the $7 billion project is a cornerstone of Ontario’s growing EV manufacturing hub and a key part of Volkswagen’s strategy to strengthen its North American supply chain. The facility will produce PowerCo’s advanced “Unified Cell” battery technology and is expected to begin operations in 2027.
The plant will directly employ up to 3,000 people once operational, with thousands more jobs supported across local suppliers and logistics partners. It’s also PowerCo’s third and largest gigafactory under construction globally.
“Today marks a big milestone for PowerCo Canada, as we officially mark the beginning of construction on our third and largest EV gigafactory worldwide,” said Frank Blome, CEO of PowerCo SE. “Electric vehicles are the future of the global automotive sector, and we’re proud to spearhead such a significant investment while positioning Canada at the forefront of innovative EV battery production.”
The construction phase is being led by Ontario-based companies Magil Construction Canada Inc. and Steelcon. Magil is responsible for laying the foundation — involving over 32,000 cubic metres of concrete and nearly 5,000 tonnes of rebar — while Steelcon will handle the installation of the structural steel components that will form the backbone of the new facility.
Ontario’s Minister of Economic Development, Job Creation and Trade, Vic Fedeli, said the project reflects the province’s ability to attract global investment even in uncertain times. “We commend PowerCo for moving swiftly to bring this project to life and for recognizing the resilience of Ontario’s world-class workforce, as well as our strong leadership in the auto and advanced manufacturing sectors,” he said.
The St. Thomas plant was first announced in March 2023, following months of negotiations between Volkswagen, PowerCo, and Canadian officials. The decision to locate in Canada was driven by access to clean energy, critical minerals like nickel and lithium, and eligibility for U.S. Inflation Reduction Act incentives through cross-border trade.
PowerCo has also begun recruiting workers across southwestern Ontario, with early hiring campaigns already drawing hundreds of applications.
