Massive $7 Billion EV Gigafactory Under Construction in St. Thomas, Ontario

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PowerCo's new battery plant in St. Thomas is set to become Canada's largest EV battery facility, signaling a significant development in the electric vehicle supply chain.

In the southeastern region of St. Thomas, Ontario, a significant transformation is underway as a vast area of farmland is being converted into one of the largest industrial construction initiatives in Canadian history. This site is poised to host a groundbreaking $7 billion electric vehicle (EV) gigafactory being developed by PowerCo, marking the establishment of Canada’s largest EV battery plant and the company’s first battery-cell manufacturing facility outside of Europe. As construction progresses, the visible changes on the site are becoming increasingly noticeable, with the foundation work expected to accelerate through late 2025 and the project entering the vertical construction phase.
Currently, construction crews are engaged in erecting substantial steel columns, beams, and trusses that will form the framework of the battery-cell production building and additional structures. Frank Blome, the CEO of PowerCo SE, stated that the ambition of the company is to establish a global battery champion that will have a robust presence in both Europe and North America. The planned plant will span an impressive 1.5 million square feet, equivalent to the area of 210 football fields dedicated solely to the factory. The entire industrial park encompasses 1,500 acres, which translates to an area comparable to 850 football fields.
Hundreds of tradespeople are presently working onsite, with the completed gigafactory designed to comprise six production blocks. The scale of construction materials being utilized underscores the enormity of the project. Magil Construction Canada is overseeing the foundation work for three major buildings, which collectively will cover 850,000 square feet. The foundation package alone will involve over 500,000 square feet of formwork, more than 32,000 cubic meters of concrete, and 4,850 metric tonnes of reinforcing steel. To provide context, the concrete volume is roughly equal to that of 13 Olympic-sized swimming pools, while the rebar package is among the largest publicly reported installations of reinforcing steel for an industrial project in southwestern Ontario.
The Canadian contractor Steelcon Group of Companies has been tasked with fabricating and erecting the structural steel components, including the necessary columns, beams, and roof trusses. More than 500 employees from Steelcon are engaged in fabrication and erection operations, which require meticulous sequencing. Initially, concrete crews establish the foundational systems and structural bases, after which steel erectors construct the building skeletons. Subsequent phases will involve the installation of exterior cladding, roofing systems, mechanical and electrical infrastructure, utilities, and specialized battery-manufacturing equipment before production can commence.
The gigafactory is the product of a significant agreement announced in April 2023 between PowerCo, Volkswagen Group—the largest automaker in Europe—and various governmental bodies at the federal, provincial, and municipal levels. PowerCo was established by Volkswagen in 2022 with the ambition of spearheading global battery cell production. Initial land clearing and site preparation concluded in 2024, followed by the awarding of key construction contracts in 2025. Upon completion, the St. Thomas Battery Cell Manufacturing Plant is expected to integrate PowerCo’s advanced Unified Cell battery technology into Canada, with projected production capabilities of up to 90 gigawatt-hours of battery cells annually, sufficient to power around one million electric vehicles each year.
While significant progress has been made, substantial work remains. Construction crews must finalize the structural frameworks for multiple production buildings and supporting facilities across the expansive site. The next steps will include the installation of mechanical, electrical, and process systems, followed by the commissioning and testing of battery production equipment. Additionally, workforce recruitment and training efforts are ongoing as the facility gears up for operational readiness. Ultimately, the plant is projected to create approximately 3,000 direct jobs, with an estimated 30,000 indirect jobs generated through suppliers, logistics firms, and other businesses across southwestern Ontario. Hiring initiatives are already underway, with over 200 employees onboard by early 2026.
PowerCo has reported that the project is progressing as scheduled, with initial battery production anticipated for 2027. However, like many large-scale projects, challenges have arisen. One of the notable difficulties has been the construction during harsh winter conditions, which necessitated careful planning and coordination among contractors to maintain progress. Despite these challenges, crews have successfully erected the first major steel structures and sustained construction momentum.
Another area of complexity has been the extensive foundation package. Coordinating the placement of tens of thousands of cubic meters of concrete and thousands of tonnes of reinforcing steel across three major buildings has demanded extensive logistics planning, scheduling, and quality control. Furthermore, the project has required the mobilization of a large skilled trades workforce, along with the simultaneous development of supporting infrastructure to service the vast site. Road improvements near Highway 3, utility upgrades, and transportation enhancements are being undertaken to facilitate both the ongoing construction activities and the long-term operations of the plant.
The Volkswagen Group also has ambitious plans to introduce over 25 new EV models by 2030. Beyond supplying batteries for Volkswagen’s next-generation electric vehicles, this project is expected to stimulate economic growth throughout the London-St. Thomas region and serve as a cornerstone for a broader EV supply chain in southwestern Ontario, attracting suppliers for battery materials, components, logistics, and advanced manufacturing.

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