Ontario Premier Doug Ford said Friday he is not worried about a two-year delay in the opening of a massive Volkswagen electric vehicle battery plant in southwestern Ontario.<\/p>\n
PowerCo Canada, a Volkswagen subsidiary, said the delay at the $7-billion factory in St. Thomas, Ont., is due partially to a downshift in market demand on electric vehicles.<\/p>\n
Ontario Premier Doug Ford says he is not worried about the two-year delayed opening of a massive Volkswagen electric vehicle battery plant in southwestern Ontario. Volkswagen subsidiary PowerCo Canada says the delay at the $7-billion factory in St. Thomas, Ont., is due partially to a downshift in market demand on electric vehicles. Ford says he is confident the one of the world\u2019s largest buildings will be completed and operational within a few years. (Sept. 25, 2026)<\/p>\n
PowerCo also announced it has hired EllisDon as the general contractor for the next phase of construction. It said the delay will allow for next-generation battery technology while retaining the flexibility to scale over time as market conditions evolve.<\/p>\n
Ford said he\u2019s confident that what is set to be Canada\u2019s largest electric vehicle battery plant will be completed and operational within a few years.<\/p>\n
\u201cI\u2019m feeling good that they\u2019re building the fourth largest facility building in the entire world, 16 million square feet,\u201d Ford said.<\/p>\n
\u201cWhat would make me worried is if they said they aren\u2019t building, but they\u2019re building and it\u2019s going to be a massive, massive facility.\u201d<\/p>\n
Economic Development Minister Vic Fedeli is equally as bullish on the project.<\/p>\n
\u201cTo us it\u2019s a great news story the building is being built,\u201d Fedeli said. \u201cThe investment is being made and we\u2019re thrilled.\u201d<\/p>\n
The plant was announced in 2023, with the federal government committing $700 million in upfront capital costs to build the factory and Ontario kicking in $500 million. The two governments are providing $1.4 billion that includes some loans.<\/p>\n
There are also upward of $13 billion in government subsidies tied to production output on the table.<\/p>\n
But opposition parties don\u2019t believe it\u2019s a good news story.<\/p>\n
\u201cThere\u2019s no way that this is good news for people, this is not good news for workers who desperately need those jobs, for all the other spinoff industries that are relying on that, and also in a region which has already seen substantial layoffs,\u201d said NDP Leader Marit Stiles.<\/p>\n
Liberal legislator Stephanie Smyth said she\u2019s worried the delay is a precursor to a shutdown.<\/p>\n
\u201cThis is not, in our opinion, cause for celebration, but cause for concern,\u201d Smyth said.<\/p>\n
\u201cIt seems like the writing\u2019s on the wall, there\u2019s a pattern here and we\u2019re watching it unfold once again.\u201d<\/p>\n
Andrew Lawton, the Conservative MP who represents Elgin\u2014St. Thomas\u2014London South, said the delay isn\u2019t \u201chugely surprising\u201d to locals but the community wants to know what\u2019s being done to move the project forward.<\/p>\n
\u201cThe reality is this plant was supposed to be operating by 2027, and the Liberal government made a commitment, offered $13 billion in subsidies, moved mountains with the promise that it was going to create 3,000 jobs in the community,\u201d he said in Ottawa on Thursday.<\/p>\n
Ford had a vision for an end-to-end electric vehicle supply chain that he aggressively pursued not long after winning his second term as premier in 2022. He envisioned critical minerals being mined and refined in northern Ontario and then shipped to battery plant facilities in southern Ontario.<\/p>\n
But several manufacturers have since delayed or cancelled their plans.<\/p>\n
Honda, which was set to build an EV battery plant and assemble electric vehicles in Alliston, delayed the project due to dwindling demand. Umicore put its plans for a cathode plant in eastern Ontario on hold. General Motors ended production of its BrightDrop electric delivery van in Ingersoll, and Ford delayed plans to build electric vehicles in Oakville in favour of its F-Series gas-powered pickup trucks.<\/p>\n
Stellantis had launched a battery plant in Windsor with LG Energy Solutions, called NextStar. But NextStar Energy pivoted to storage batteries and LG has since bought Stellantis out of that operation.<\/p>\n
The auto sector has also been hit hard by U.S. President Donald Trump\u2019s trade war with Canada. <\/p>\n
This report by The Canadian Press was first published Sept. 25, 2026.<\/p>\n
By Liam Casey, The Canadian Press<\/p>\n
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