Ontario Celebrates PowerCo Construction Milestone in St. Thomas
October 28, 2025
New facility will create up to 3,000 direct jobs and protect province’s auto manufacturing supply chain
October 28, 2025
Economic Development, Job Creation and Trade
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ST. THOMAS — Today, the Ontario government marked a major milestone in the construction of Volkswagen’s PowerCo facility in St. Thomas, which is on track to become Canada’s largest electric vehicle (EV) battery plant with initial production set to begin in 2027. With contracts awarded to two Ontario-based companies, concrete pouring is officially underway at PowerCo’s $7 billion EV manufacturing facility, laying the foundation for the 350-acre industrial site.
“At a time of increasing global uncertainty, our government continues to create the conditions for businesses and workers to succeed,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “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.”
First announced in March 2023, Volkswagen’s PowerCo will bring advanced manufacturing back to St. Thomas, employing up to 3,000 highly skilled workers directly at the plant, while supporting thousands more indirect jobs across the supply chain and the broader economy. The pouring of concrete marks the first of several important progress updates, with additional investments in local infrastructure and utilities to follow.
“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. We aim to build a global battery champion with a strong footprint in Europe and North America.”
Once complete, the facility will bring PowerCo’s advanced battery technology to the North American market, with the gigafactory serving as PowerCo’s third and largest project globally. Over the past four years, Ontario has attracted over $46 billion in new investments in vehicle manufacturing and the EV battery supply chain, connecting the province’s northern critical mineral wealth with its southern manufacturing expertise. In a shifting global landscape, the Ontario government 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.
Quick Facts
- Headquartered in Germany, Volkswagen Group is one of the world’s largest automakers with $528 billion CAD in sales revenue in 2024.
- On March 13, 2025, Volkswagen announced that its subsidiary PowerCo will establish an EV battery manufacturing facility in St. Thomas, Ontario, Canada to steer all North American activities.
- Major contracts were awarded to Magil Construction Canada Inc, to lead the foundational work for three major buildings at the site, involving 500,000 sq. ft. of formwork, 32,500 cubic meters of concrete, and approximately 4,850 tonnes of rebar, and to Steelcon, to oversee the installation of steel components at the site.
- Ontario’s auto manufacturing sector supports over 100,000 direct jobs and hundreds of thousands of indirect jobs across the province. It includes over 700 parts firms, over 500 tool, die, and mold makers, and over 400 connected and autonomous vehicles companies.
Quotes
“The momentum we’re seeing here in St. Thomas is nothing short of remarkable. 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.”
– Rob Flack
MPP for Elgin—Middlesex—London
“The excitement in St. Thomas is palpable, as we celebrate this monumental construction milestone. 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”
– Joe Preston
Mayor of St. Thomas
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