# Volkswagen Delays Ontario EV Battery Plant

Volkswagen has postponed the opening of its $7 billion electric vehicle (EV) battery manufacturing plant in St. Thomas, Ontario, from 2027 to 2029. The delay aims to integrate next-generation battery technology and respond to shifting EV market demands. Construction continues on the 370-acre site, which is planned to employ approximately 3,000 workers and produce battery cells sufficient for about one million EVs annually. This adjustment reflects broader trends in Canadian EV manufacturing and impacts regional supply chains and procurement timelines.

- Procurement professionals should note the extended timeline for major EV battery production capacity in Ontario, affecting supplier engagement and contract scheduling.
- The delay underscores the importance of flexibility in procurement planning to accommodate evolving technology requirements in the EV sector.
- Contractors and suppliers involved in construction and battery technology development may find opportunities aligned with the revised project schedule.
- Regional economic development and government stakeholders should consider the implications for workforce planning and local supplier ecosystems in Ontario and Canada.

**Jurisdictions:** sled
**Industries:** Transportation, Energy & Utilities
**Topics:** Physical Infrastructure, Policy
**Published:** September 24, 2026

### Government Entities
- Government of Canada
- Government of Ontario

### Vendors
- Volkswagen (prime contractor)
- PowerCo Canada (subsidiary)

### Key Quotes
> getting the pacing right 	6 not stepping back	6 to protect our long-term investment, support regional jobs, and position Canada, Ontario, and St. Thomas to benefit in a dynamic and evolving market.
> — Joel Karlsberg, Chief Procurement Officer, PowerCo Canada

### Sources
- [Volkswagen Delays $7 Billion Ontario EV Battery Plant by Two Years - Drive Tesla](https://driveteslacanada.ca/news/volkswagen-st-thomas-battery-plant-delayed-2029) - driveteslacanada.ca