PowerCo is pushing back battery production at its $7-billion Ontario facility by two years, while Scout says its vehicle plans remain unaffected.
- PowerCo now expects battery-cell production in St. Thomas, Ontario, to begin in 2029 instead of 2027.
- Construction of the first phase continues, with EllisDon named general contractor.
- Scout says the delay will not affect its plans, despite its intended use of Canadian-made PowerCo batteries.
Scout Traveller | Photo: Scout MotorsVolkswagen Group’s Canadian battery plant will take longer to begin supplying cells, but construction is moving ahead. PowerCo has postponed production at its $7-billion St. Thomas, Ontario, facility until 2029, two years later than originally planned, according to Automotive News Canada.
The revised schedule separates two parts of the project: building the factory and bringing battery production online. While the startup date has changed, PowerCo says construction of the first phase remains unaffected.
A New Timeline for Demand and Technology
PowerCo cited market demand and advances in battery technology as reasons for the delay. The company says the additional time will allow the Ontario facility to accommodate next-generation battery technology, although the report does not specify the chemistry or manufacturing changes involved.
Joel Karlsberg, PowerCo Canada’s chief procurement officer, said the plant remains central to the company’s North American strategy. Its production ramp-up is being reviewed to better match market conditions and protect the long-term investment.
The decision comes as automakers reassess the timing of North American EV and battery investments. For St. Thomas, it means a longer wait for battery manufacturing to begin, even as the physical facility takes shape.
Construction Continues, Hiring Slows
PowerCo named EllisDon as general contractor on September 24. Construction began in fall 2025, with the builder’s on-site workforce expected to peak at around 1,300.
PowerCo employs approximately 300 people in Canada. Near-term hiring remains unchanged, but production recruitment will proceed more slowly. St. Thomas is set to become its third and largest battery-cell plant, following Germany and Spain.
Scout Traveller | Photo: Scout MotorsScout Says Its Launch Plans Remain Intact
The delay also raises a supply question for Scout Motors, which planned to source batteries from PowerCo’s Canadian operation. Scout has said series production of its Traveler SUV for consumers will begin in 2028, ahead of the Ontario plant’s revised startup date.
A Scout spokesperson told Automotive News Canada that the PowerCo delay would not affect the brand’s plans. The report does not explain how Scout will bridge the gap in battery supply.
For Canada’s automotive industry, the project remains an active construction investment. The main change is when it will begin producing cells and adding its manufacturing workforce.
Source: Automotive News Canada
