PowerCo Canada, the battery subsidiary of Volkswagen, has begun construction on its new electric vehicle battery gigafactory in St. Thomas, Ontario — a project expected to become Canada’s largest battery manufacturing site. The facility is scheduled to begin operations in 2027 with an annual production capacity of up to 90 gigawatt-hours (GWh).
The company said foundation work is underway on three major buildings covering roughly 79,000 square metres, with Canadian contractor Magil Construction handling the work. In total, the project will use 46,000 square metres of formwork, over 32,000 cubic metres of concrete, and approximately 4,850 tonnes of reinforcing steel. “Steel erection by Canadian partner Steelcon is also set to commence in the coming weeks,” PowerCo said.
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“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.”
Volkswagen announced the location of its first North American battery plant in early 2023, choosing St. Thomas for its access to renewable energy, skilled workforce, and strong government incentives. The facility will produce PowerCo’s unified cell — a standardised prismatic battery cell design adaptable for various vehicle types through changes in chemistry and configuration.
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Canadian officials hailed the project as a major step toward strengthening the country’s electric vehicle supply chain. “PowerCo’s new facility in St. Thomas will strengthen our domestic EV battery production while also bringing benefits to Ontario and Canada’s manufacturing sectors such as steel and aluminum,” said Mélanie Joly, Canada’s Minister of Innovation, Science and Industry. “The construction of this facility will create good-paying jobs now, as we are working towards a cleaner, more sustainable and resilient economy.”
Ontario Premier Doug Ford added that the investment underscores the province’s industrial competitiveness. “Ontario has the best workers in the world and PowerCo’s once-in-a-generation investment is proof we have everything we need right here to build the most competitive economy in the G7,” he said.
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According to PowerCo, the St. Thomas facility will play a central role in Volkswagen’s global battery network and could serve as a production hub for export markets. Recruitment efforts are already underway, with the company reporting over 100 applications since launching a regional hiring campaign across Southwestern Ontario.
