Operations at the PowerCo gigafactory in St. Thomas have been pushed back by two years, with the facility now expected to commence production in 2029. The revised timeline was announced alongside the appointment of London-based EllisDon Corporation as the project’s general contractor. The delay, detailed in a statement released Thursday, stems from evolving market demand, rapid technological advancements, and the Volkswagen Group’s long-term strategy. PowerCo cited the fast-changing nature of electric vehicle (EV) battery technology as a key factor, noting challenges in both production methods and future battery designs. EllisDon, a leading Canadian employee-owned construction firm, takes over as general contractor. This phase will focus on core infrastructure and structural development, enabling continued on-site work since the facility’s groundbreaking in 2025. St. Thomas Mayor Joe Preston stated he was “not surprised” by the delay, emphasizing his reliance on updates from project stakeholders. “There are still some market conditions that Volkswagen and PowerCo are looking at,” Preston commented. “We all know what’s happening in the world from an automotive growth point of view. But the fact that there’s still this command committed to the project in Saint Thomas and southern Ontario, we think it’s a new positive step forward today.” Addressing community skepticism about market forces potentially jeopardizing the project, Preston asserted, “Well, I deal with facts, and not just not the other people’s rumors. We’re dealing with facts from PowerCo, from Volkswagen, and now from a new general contractor as to what the next steps will be.” The appointment of EllisDon was highlighted by Preston as a positive development. “This is a very big build, and it will need a general contractor the size of EllisDon,” he said. “We’re happy it’s a local company who kind of knows where we are and what we do.” In the statement Joel Karlsberg, Chief Procurement Officer for PowerCo Canada, noted the strategic importance of the revised schedule. “The St. Thomas gigafactory remains a cornerstone of our North American strategy,” Karlsberg stated. “We are continuing to build now while determining how and when the facility scales over time. This is about getting the pacing right—not stepping back—to protect our long-term investment, support regional jobs, and position Canada, Ontario, and St. Thomas to benefit in a dynamic and evolving market.” The PowerCo facility represents an investment of up to $7 billion and is PowerCo’s third and largest global project. At the peak of construction, upwards of 1,300 EllisDon workers are expected to be involved on-site, with approximately 60 currently engaged in initial works. Upon reaching full operational capacity, the plant is projected to employ around 3,000 people.
