Ontario Construction News staff writer
Volkswagen Group’s subsidiary, PowerCo SE, initiated a groundbreaking ceremony for its upcoming $7 billion gigafactory in St. Thomas, Ontario. Scheduled for construction starting in 2024, this marks PowerCo’s entry into North America. Sebastian Wolf, COO of PowerCo SE, affirmed completion of initial site preparations and readiness for the factory’s sustainable battery cell production.
“We are fully on track,” said Sebastian Wolf, COO of PowerCo SE. “Site preparation, the first phase of Gigafactory St. Thomas, has been completed. We are now ready for the next stage on our path to the sustainable and responsible production of battery cells.
“PowerCo will be a reliable partner for the people in St. Thomas and Ontario,” he said of the company’s first North American site.
The company solidified partnerships with local entities like Hydro One, Turner & Townsend, and WSP, setting up operations in St. Thomas and progressing with infrastructure expansion and environmental assessments. The gigafactory, upon full expansion, aims for an annual production capacity of 90 GWh, potentially generating 3,000 skilled jobs and numerous indirect employment opportunities by 2030.
St. Thomas will also be the largest PowerCo gigafactory to date with an annual production capacity of up to 90 GWh in the final expansion phase.
“This important step forward is a sign of the continued progress being made by PowerCo Canada Inc., working in tandem with support from the Government of Ontario,” said Vic Fedeli, Ontario’s minister of economic development, job creation and trade. “When completed, this gigafactory will represent a significant milestone in the end-to-end auto and EV battery supply chain growing across the province.
“We also welcome the news that PowerCo Canada Inc. has begun local hiring and setting up its resident office in St. Thomas. We will continue to monitor the progress of this project with eager anticipation.”
The cell factory with a projected start of production in 2027.
“I’m excited that Volkswagen has selected St. Thomas to be a key part of the plan for North America as a hub for building the cars of the future. This investment by PowerCo is not only a game changer for Ontario’s EV vision, but also a huge boost to our community and the hardworking families that call St. Thomas and Elgin County home. Our region will surely prosper from this for decades to come,” said St. Thomas Mayor Joe Preston.