Volkswagen has officially broken ground on its $7 billion electric vehicle (EV) battery-cell plant in St. Thomas, Ontario, marking a major milestone in the automaker’s North American electrification strategy. The facility, developed by Volkswagen’s battery subsidiary PowerCo, is projected to be one of the largest of its kind on the continent and is expected to begin production by 2027.
The plant will produce up to 90 gigawatt-hours (GWh) of battery cells annually—enough to power approximately 1 million EVs per year. It represents the largest automotive investment in Canadian history, and is expected to create up to 3,000 direct jobs, with thousands more in the broader supply chain.
Despite recent challenges in the EV market, including slowing sales and rising U.S. tariffs on Canadian auto imports, Volkswagen has reaffirmed its commitment to the project. The company views the facility as a strategic anchor for its North American EV ambitions, enabling localized production and reducing reliance on overseas supply chains.
The groundbreaking ceremony, held on October 28, 2025, was attended by senior executives from Volkswagen and PowerCo, as well as Canadian government officials. The plant is part of a broader push by Canada to attract clean-tech manufacturing and position itself as a hub for EV innovation.
Volkswagen’s investment follows similar moves by other global automakers, but stands out for its scale and timing. While some competitors have paused or scaled back battery projects due to market volatility, Volkswagen is pressing ahead, citing long-term demand and the need for industrial resilience.
The St. Thomas gigafactory will supply battery cells for Volkswagen’s future EV models in North America, including vehicles from its Audi and Porsche brands. It will also support the company’s goal of achieving carbon-neutral mobility by 2050.
Volkswagen AG
Sources: Motor Illustrated, Connect CRE, Yahoo Finance.
