PowerCo will open its new $7-billion EV-battery gigafactory in St. Thomas, Ont., in the near future.

Multiple reports indicate that the Volkswagen subsidiary is still on track to begin initital production in 2027 despite uncertainty surrounding the German parent.

PowerCo is preparing to open its $7-billion electric-vehicle battery gigafactory in St. Thomas, Ont., with initial battery production targeted for 2027. A PowerCo spokesperson told The London Free Press that the company remains committed to the St. Thomas project, describing the investment as “a strategic, long-term commitment to supporting high-quality domestic jobs while strengthening North American supply chains.”

The commitment comes as Volkswagen has sought to reduce its vehicle-model lineup by as much as 50% and reduce its employee total by as much as 100,000 globally but faced strong opposition.

The sprawling St. Thomas project is now well into vertical construction and will become Canada’s largest EV-battery plant and PowerCo’s first battery-cell factory outside Europe, Construct Connect reported. The 1.5-million-square-foot facility is being built on a 1,500-acre industrial site and will eventually comprise six production blocks.

Construction has advanced rapidly since land clearing and site preparation were completed in 2024, Construct Connect reported. Foundation work accelerated through late 2025, and crews are now erecting massive steel columns, beams and roof trusses for the battery-cell production building and other structures. Hundreds of tradespeople are working onsite.

Magil Construction Canada is leading foundation work on three major buildings totalling 850,000 sf. The foundation package includes more than 500,000 sf of formwork, 32,000 cubic metres of concrete and 4,850 metric tonnes of reinforcing steel, according to Construct Connect. Steelcon Group is fabricating and erecting the structural steel, with more than 500 employees supporting the work.

Once completed, the plant will manufacture PowerCo’s Unified Cell batteries and is expected to produce up to 90 gigawatt-hours of battery cells annually, enough to power about one million electric vehicles each year. The facility is projected to employ up to 3,000 people directly while supporting as many as 30,000 indirect jobs across Southwestern Ontario. Hiring is already underway, with more than 200 employees on board by early 2026.

The project stems from a landmark agreement announced in April 2023 involving Volkswagen Group, PowerCo and the federal, provincial and municipal governments. In addition to supplying batteries for Volkswagen’s next generation of electric vehicles, the plant is expected to anchor a broader EV supply chain in southwestern Ontario by attracting battery-material, component, logistics and advanced manufacturing suppliers.

Pictured: Future PowerCo EV-battery plant in St. Thomas, Ont.

Rendering: Volkswagen Canada