Ontario Defends Volkswagen Battery Plant Delay as 'Extremely Exciting'

Ontario officials are defending the delayed opening of Volkswagen's $7 billion EV battery plant in St. Thomas, saying construction progress remains positive even as opposition parties question the impact on jobs and taxpayer support.

The comments come after PowerCo Canada, Volkswagen's battery subsidiary, announced operations at the facility will begin in 2029 instead of the originally planned 2027.

Province stands by timeline

Economic Development Minister Vic Fedeli described the delay as "extremely exciting" and pointed to ongoing construction activity at the site.

"There are now shovels in the ground, a company has been hired and awarded contracts, there's a $7 billion building and infrastructure being built there," Fedeli said. "To me, that's nothing but good news."

Fedeli said provincial funding commitments are structured around future production, meaning payments are tied to batteries or vehicles being manufactured.

Premier Doug Ford convened his cabinet to assess the progress of the government's "protect Ontario" promise as the province's broader EV manufacturing strategy faces increased scrutiny.

Construction continues

Despite the later opening date, construction is continuing at the 370-acre site. Once fully operational, the facility is expected to employ about 3,000 people and produce up to 90 GWh of batteries annually.

Ontario committed $500 million toward the project, while federal support includes $13.2 billion in investments, subsidies and tax credits tied to production.

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