Volkswagen Group has officially begun construction on its CAD$7-billion battery cell plant in St. Thomas, Ontario, pressing forward with the massive initiative even amid global trade challenges and a shaky outlook for North America’s EV market.
On October 28, PowerCo—Volkswagen’s battery division—held a ceremonial groundbreaking at the site, shortly after construction teams started installing formwork and rebar for the plant’s foundation.
The facility in Canada will be PowerCo’s third and most expansive battery plant, joining existing sites in Germany and Spain. According to CEO Frank Blome, this ‘major milestone’ reinforces the company’s plan toward becoming a leading battery manufacturer across both Europe and North America.
In 2023, Volkswagen revealed its intention to build the factory, committing $7 billion to the initiative. The Ontario government initially offered $500 million in direct incentives and promised additional investments totaling hundreds of millions to enhance infrastructure in St. Thomas and nearby areas—covering roads, rail, utilities, and emergency services. Combined federal and provincial support later climbed to $13 billion. The plant is slated to begin operations in 2027.
The Gigafactory will span 350 acres and include six production blocks, with an annual output capacity sufficient to power up to one million electric vehicles (EVs). The facility is projected to generate around 3,000 direct jobs, as well as thousands more indirect positions through suppliers and local businesses.
PowerCo plans to manufacture the unified cell, a prismatic battery design with standardized dimensions that can be customized for various uses by altering the cell chemistry. Once fully developed, the facility is projected to be the largest manufacturing plant in Canada. Volkswagen confirmed in September that the Canadian site will provide batteries for its Scout Motors assembly plant in South Carolina and is also expected to support other VW Group facilities across North America.
TRENDING | BYD Racco to Enter Japanese Kei Car Market in 2026
