Volkswagen to build first overseas battery manufacturing plant in St. Thomas

Volkswagen has announced it will build its first overseas battery manufacturing plant in St. Thomas.

The German automaker said its subsidiary PowerCo will establish an electric vehicle (EV) battery manufacturing facility in the city south of London.

“This marks a new era for our communities in London, St. Thomas and Southwestern Ontario. One where we embrace the future and think not only in local but in regional and global terms. Seeing this announcement come to fruition after hard work by many partners is truly exciting. The future of our region’s economy continues to look bright,” said London North Centre MP Peter Fragiskatos.

The province set the stage last month for the Volkswagen announcement, introducing and quickly passing a law adjusting the municipal boundaries for a 1,500-acre "mega site" in southwestern Ontario.

“This historic investment has created unprecedented collaboration with our regional partners,” President & CEO, London Economic Development Corporation, Kapil Lakhotia. “Volkswagen will have significant workforce needs over the coming years and LEDC will continue to work collaboratively with regional partners, R&D facilities, post secondary institutions and training centres to ensure we have the talent and skill needed to support this sizable investment.”

As previously reported by CTV News, the mayor of Central Elgin said he was “taken completely off guard” when he found out that the province was annexing 700 acres into the city of St. Thomas, Ont.

“I think a little more than surprised,” said Sloan, when responding to Bill 63, which was introduced by the province, to consolidate land with St. Thomas for an investment-ready mega site.

The 700 acres is in addition to the 800 acres St. Thomas purchased in 2022.

(AP Photo/Fabian Bimmer, File)

“This is the largest automotive facility ever in Canada,” St. Thomas Mayor Joe Preston told a news conference on Monday. 

“Volkswagen’s first overseas gigafactory for cell manufacturing, which will produce sustainable unified cells,” describes a written statement by the German automaker. “Start of production is planned for 2027.”

For about a year, St. Thomas has been aggressively acquiring and assembling a 1,500-acre property east of Highbury Avenue and south of Ron McNeil Line.

Mayor Preston said construction of the massive gigafactory will require about 1,000 workers in the short term.

“There is a lot of construction even today from a clearing and leveling of land perspective. That will have to happen very quickly before summer,” he said.

The property in St. Thomas beat out at least 90 locations around the globe — including 40 in North America.

MPP Rob Flack said geography was only one reason the area was chosen by Volkswagen.

“Our knowledge base, our skill set, and we are turning it into long term sustainable jobs not just for St. Thomas, but all of southwestern Ontario,” Flack explained.

The announcement energizes the region’s economic recovery after losing scores of automotive manufacturing jobs over the past decade to closures of Timken St. Thomas, Ford Talbotville and others.

Volkswagen is expected to provide more details at a future announcement.