Volkswagen is delaying the start of production at its battery plant in St. Thomas, Canada, by two years. The $7 billion facility is now scheduled to begin production in 2029. PowerCo Canada attributes the delay to market demand, technological developments, and the Volkswagen Group’s long-term strategy.
PowerCo points to new battery technology
According to PowerCo, the later production start will allow the company to incorporate next-generation battery technology. The plant is also intended to provide flexibility to adjust its production capacity as market conditions change.
Construction project enters next phase
Despite the later production start, PowerCo is continuing construction. The next phase of the project will focus on core infrastructure and structural work.
Volkswagen announced the battery plant in 2023. At the time, the Canadian federal government committed $700 million toward upfront construction costs. The province of Ontario contributed another $500 million.
Source:
https://powerco.ca/en/news/press-release-10-28-2025.html
https://www.chch.com/chch-news/volkswagen-delays-production-at-ontario-electric-vehicle-battery-plant-until-2029/
