A planned $7-billion electric-vehicle battery factory in St. Thomas, Ontario, is now expected to begin production in 2029, two years later than initially planned. PowerCo Canada, a Volkswagen subsidiary, disclosed the revised timeline as it named Canadian construction company EllisDon the plant's general contractor.

PowerCo says it is aligning the project with evolving market demand, battery technology and Volkswagen's broader strategy. The company says the slower timetable offers room to incorporate next-generation technology and scale production as conditions change. Construction is continuing, with the next phase focused on core infrastructure and structural work.

What changes for Ontario?

The revised start date delays the point at which the St. Thomas plant can begin manufacturing battery cells. It also puts renewed attention on the timing of jobs, supplier contracts and public support attached to the project. When the plant was announced in 2023, the federal government committed $700 million toward upfront capital costs and Ontario committed $500 million.

Ontario has treated electric-vehicle and battery manufacturing as a major part of its industrial strategy. A later production date does not by itself mean the project has been cancelled, but it does alter the schedule against which its promised economic benefits can be measured. PowerCo says the decision is about pacing a long-term investment.

The next markers to watch are construction milestones, a firm commissioning schedule and updated employment plans. Those will show how the revised 2029 target translates into work on the ground in St. Thomas.

Sources: Canadian Press report; Ontario budget context.