PowerCo says St. Thomas plant will begin operations in 2029
PowerCo has moved the start of battery cell manufacturing at its Canadian site in St. Thomas to 2029, about two years later than the 2027 date it had been targeting.
- 2029
- 2027
- 2 years
- 2025
What Happened
PowerCo, the Volkswagen Group's battery business, now expects its St. Thomas plant in Canada to begin building cells in 2029, roughly two years after the 2027 start it had been working toward. PowerCo attributes the revised plan to three factors: a change in demand, the chance to fit more advanced cells, and its parent group's future direction. St. Thomas is being readied for next-generation cells, and PowerCo says it keeps the option to add capacity in steps as conditions change.
- Market demand that has shifted since the plan was set
- Advances in battery technology
- The Volkswagen Group's long-term strategy
PowerCo describes the shift as a phased development approach rather than a halt. The later date is intended to let the site take on newer battery technology, and the company says the plant can be scaled up over time as market conditions change. Product strategy for the site is being set alongside the revised schedule.
Work at the site has not stopped. PowerCo Canada appointed EllisDon to a role that keeps on-site construction moving, and the build has entered the core infrastructure and structural stages that will support eventual production. The company says progress on the ground has been steady since the groundbreaking in 2025.
Construction begins at the St. Thomas site with a groundbreaking.
The original target for the plant to start producing cells, now set aside.
The new expected start of operations at St. Thomas.
Why this matters
The plant was planned to supply cell production in Canada, and the later start means that output arrives roughly two years behind schedule. PowerCo ties the change to demand that has shifted, newer battery technology and Volkswagen Group strategy, and says it can grow the site in stages as the market moves.
Terms in This Story
- Gigafactory
- A very large battery or vehicle plant built to produce at high volume.
- Battery cell
- The individual unit inside a battery pack that stores and releases electrical energy.
- Groundbreaking
- The ceremony or moment when construction work physically starts on a site.
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