Ontario Construction News staff writer
Volkswagen subsidiary PowerCo SE is moving forward with construction of its $7-billion electric vehicle battery plant in southwestern Ontario, signing major contracts that will see 32,500 cubic metres of concrete poured for the factory’s foundation and 46,500 square metres of steel installed for its frame.
The St. Thomas gigafactory, set on a 140-hectare site, will produce batteries for Volkswagen’s growing electric vehicle range. The foundation will support the first of three buildings that will comprise the 79,000-square-metre (850,000-square-foot) facility, the largest battery plant in Canada.
Meredith Gibbons, PowerCo’s chief procurement officer, said the work marks “a critical milestone.” The concrete will be poured by Magil Construction Canada “within weeks,” followed by steel installation by Woodbridge-based Steelcon Group of Companies in the coming months. Steelcon is expected to employ more than 500 workers on the project.
The project already employs 200 people, with the new contracts adding 500 skilled jobs, Gibbons said. Recruitment has also begun for roles in engineering, IT, chemistry, and sustainability, as the plant gears up for production slated to begin in 2027.
“It is very exciting. This is a gigafactory for the future and it takes time to do it right, but we are focused on growth and development,” Gibbons said. The company plans further announcements on suppliers for battery assembly and future phases of construction. “We have global sourcing targets and local sourcing strategies. We have a lot of tenders out in the market,” she added.
Ontario Premier Doug Ford hailed the project as critical for the province and country. “This is going to be the fourth-largest building in the world, and then they’re going to have their suppliers all behind the main building,” he said. “It’s going to create thousands of jobs across the province, and we’re just so happy they’re using local companies.”
PowerCo CEO Frank Blome said the announcement “propels the project into its next phase” and called the plant “a cornerstone in our ambition to build a global cell company with strong roots in Europe and North America.”
The $7-billion facility is scheduled to begin initial production in 2027. A groundbreaking ceremony is expected in the coming weeks.
The project comes amid trade tensions, including U.S. President Donald Trump’s tariffs on Canadian steel, aluminum, and vehicles. Despite market uncertainty, PowerCo and Volkswagen say the long-term outlook remains positive.
