St. Thomas Battery Gigafactory Delayed to 2029: Technology Upgrade and Market Shifts Behind the Slip

PowerCo Canada announced that the St. Thomas battery gigafactory will now start operating in 2029, two years later than the 2027 target, to make room for next‑generation battery technology and keep the project flexible as market conditions change.

The $7‑billion plant was unveiled in 2023 with a promise of up to $13 billion in federal subsidies and an estimate of 3,000 direct, well‑paid jobs, plus many indirect positions in the region.

In its news release, PowerCo said the shift will allow the factory to “accommodate next‑generation battery technology, while retaining the flexibility to scale over time as market conditions evolve.”

Conservative MP Andrew Lawton, who represents Elgin—St. Thomas—London South, criticised the postponement, arguing that the federal subsidies and job promises are now at risk.

PowerCo’s explanation comes as other manufacturers in Ontario, such as General Motors and Honda, have also altered or cancelled EV projects after facing weaker demand, showing a broader industry slowdown.

The delay highlights how rapid advances in battery tech and fluctuating electric‑vehicle demand can force large investors to adjust timelines, even when billions of dollars and thousands of jobs are on the line.

St. Thomas Mayor Joe Preston said the city remains confident, noting that construction is underway and local hiring continues.

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