ST. THOMAS, Ont. — The Ontario government and Volkswagen’s PowerCo SE celebrated a major milestone Tuesday as construction advances on Canada’s largest electric vehicle (EV) battery manufacturing facility in St. Thomas — a $7-billion project expected to reshape the province’s automotive landscape and create up to 3,000 direct jobs when production begins in 2027.
Concrete pouring is now underway at the 350-acre site, marking the start of full-scale construction on PowerCo’s third and largest EV gigafactory worldwide. Two Ontario-based firms, Magil Construction Canada Inc. and Steelcon, have secured major contracts to lead foundational and structural work. Magil Construction will oversee the foundation for three main buildings, involving 500,000 square feet of formwork, 32,500 cubic metres of concrete, and nearly 4,850 tonnes of rebar, while Steelcon will handle steel installation across the sprawling complex.
Government Praises Progress and Partnership
At a ceremony marking the milestone, Ontario’s Minister of Economic Development, Job Creation and Trade, Vic Fedeli, said the project reinforces the province’s position as a global leader in advanced manufacturing and electric mobility.
“At a time of increasing global uncertainty, our government continues to create the conditions for businesses and workers to succeed,” said Fedeli. “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 province’s strong leadership in the auto and advanced manufacturing sectors.”
The facility, first announced in March 2023, represents one of the largest single investments in Canadian manufacturing history. Once operational, it will employ up to 3,000 highly skilled workers and support thousands more indirect jobs across the province’s EV supply chain. The project also includes significant upgrades to local infrastructure and utilities, reflecting its role as a catalyst for broader economic growth in southwestern Ontario.
A Global Battery Leader Anchoring in Canada
Frank Blome, CEO of PowerCo SE, said the milestone marks an important step toward building a North American manufacturing base for Volkswagen’s growing EV portfolio.
“Today marks a big milestone for PowerCo Canada, as we officially mark the beginning of construction on our third and largest EV gigafactory worldwide,” Blome said. “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. We aim to build a global battery champion with a strong footprint in Europe and North America.”
Once complete, the St. Thomas plant will produce cutting-edge battery cells for Volkswagen and other automakers, strengthening supply chains and reducing reliance on overseas production. The facility also advances PowerCo’s goal of integrating clean energy and circular manufacturing practices into its operations.
St. Thomas Reclaims Its Manufacturing Legacy
Local leaders hailed the project as a transformational opportunity for St. Thomas, a community with deep roots in automotive production.
“The momentum we’re seeing here in St. Thomas is nothing short of remarkable,” said Rob Flack, MPP for Elgin—Middlesex—London. “This investment is driving real opportunity across our region by creating good jobs, building strong partnerships, and restoring pride in Ontario’s manufacturing roots. The future of our province’s auto sector is being built right here in St. Thomas, and it will benefit local families for generations to come.”
Mayor Joe Preston echoed that sentiment, noting the project’s immediate impact on the local economy. “The excitement in St. Thomas is palpable, as we celebrate this monumental construction milestone,” he said. “The St. Thomas gigafactory is rapidly coming to life and already delivering on its promise of prosperity — supporting hundreds of local jobs and providing a significant boost to our economy right here in our community.”
Reinforcing Ontario’s Auto Sector
The PowerCo plant is the latest in a series of major automotive and battery investments in Ontario. Over the past four years, the province has attracted more than $46 billion in new commitments across the EV supply chain, from critical mineral extraction in the north to advanced manufacturing in the south.
Ontario’s auto industry currently supports over 100,000 direct jobs and hundreds of thousands of indirect roles across more than 700 parts suppliers, 500 tool-and-die makers, and 400 companies involved in connected and autonomous vehicle technologies.
Volkswagen Group, headquartered in Germany, reported $528 billion CAD in sales revenue in 2024, underscoring its global scale and capacity to drive innovation in the EV sector. The St. Thomas facility, announced in March 2025 as PowerCo’s North American hub, will be central to those efforts.
Securing Ontario’s Place in the EV Future
With the St. Thomas project now firmly underway, Ontario’s government says it remains focused on ensuring the province remains the most competitive jurisdiction in the G7 for automotive investment.
“In a shifting global landscape,” the province said in its release, “Ontario continues to take bold and decisive action to protect workers, unlock new opportunities, and reinforce the province’s position as the most competitive jurisdiction in the G7 to invest, expand and grow.”
The PowerCo project represents not only a cornerstone of Canada’s clean-tech economy but also a symbol of renewed confidence in Ontario’s industrial future — a future built on electrification, innovation, and homegrown talent.
