Ontario Construction News staff writer
Ontario government celebrated a major milestone Monday in the construction of Volkswagen’s PowerCo facility in St. Thomas, which is expected to become Canada’s largest electric vehicle (EV) battery plant when production begins in 2027.
Contracts have been awarded to two Ontario-based companies, and concrete pouring is officially underway at the $7-billion, 350-acre site.
PowerCo, a Volkswagen subsidiary, announced its plans for the St. Thomas facility in March 2025 to oversee all North American operations.
Major contracts went to Magil Construction Canada Inc., leading foundational work for three buildings involving 500,000 sq. ft. of formwork, 32,500 cubic metres of concrete, and 4,850 tonnes of rebar, and to Steelcon, managing steel installation at the site.
“At a time of increasing global uncertainty, our government continues to create the conditions for businesses and workers to succeed,” said Vic Fedeli, Ontario’s 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, PowerCo is expected to employ up to 3,000 workers directly at the plant, while supporting thousands more jobs across the supply chain and the broader economy. The concrete work marks the first of several construction milestones, with additional investments in local infrastructure and utilities expected in the coming months.
“Today marks a big milestone for PowerCo Canada, as we officially begin 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.”
The facility will bring PowerCo’s advanced battery technology to the North American market, joining two other gigafactories the company operates globally. Ontario has attracted more than $46 billion in vehicle manufacturing and EV battery supply chain investments over the past four years, connecting the province’s northern critical mineral resources with southern manufacturing expertise.