PowerCo Begins $7B Gigafactory Construction in Ontario

Volkswagen's battery subsidiary PowerCo has officially started construction on a $7 billion gigafactory in St. Thomas, Ontario, which will become Canada's largest electric vehicle battery plant with production targeted for 2027. The facility aims to produce up to 90 GWh of battery cells annually, enough to power about one million EVs, and will support Volkswagen's North American manufacturing operations, including the Scout Motors assembly site in South Carolina. The project represents a major strategic investment to localize battery production, strengthen supply chains, and leverage Canada's clean energy and raw material proximity. Construction involves large-scale infrastructure upgrades and the use of significant materials such as concrete and steel, with local contractors mobilized and hiring underway to create up to 3,000 direct jobs and many more indirect jobs. This investment underscores Volkswagen's commitment to positioning Canada as a leader in innovative EV battery production despite ongoing trade tensions and market uncertainties. Government officials have praised the project as a critical step toward establishing a domestic battery supply chain and supporting regional economic growth.