Contracts awarded for $7B EV battery plant in St. Thomas

Key Takeaways:

• PowerCo Canada has awarded major construction contracts to Steelcon Group of Companies and Magil Construction Canada for its $7-billion St. Thomas gigafactory, the largest electric vehicle battery plant in Canada.
• The project will generate thousands of jobs, with Steelcon employing more than 500 Canadian workers and Magil undertaking one of the largest foundation packages ever awarded in Southwestern Ontario.
• Once complete, the facility will produce enough battery cells to power up to one million electric vehicles annually, marking a cornerstone in Volkswagen’s North American battery strategy.

The Whole Story:

PowerCo Canada has awarded two major construction contracts for its $7-billion electric vehicle battery plant in St. Thomas, Ont., a project billed as the largest of its kind in Canada.

The Volkswagen subsidiary said Thursday that Steelcon Group of Companies will handle structural steel work, while Magil Construction Canada Inc. has secured the foundations contract. The work includes one of the biggest foundation packages ever awarded in Southwestern Ontario, covering three buildings across 850,000 square feet.

“We are proud to partner with PowerCo Canada to build the St. Thomas gigafactory, a project that embodies the future of Canadian industry,” said Danny Bianco, President at Steelcon Group of Companies. “Our team of skilled Canadian fabricators is ready to deliver, and we are especially proud to contribute to a project that will support significant local employment and drive economic growth here in Ontario.”  

PowerCo says the first concrete pour will involve more than 32,500 cubic metres of concrete and 500,000 square feet of formwork, with physical construction set to begin in the coming weeks. The factory will eventually produce enough battery cells to power up to one million electric vehicles a year.

“Magil Construction has a nearly 80-year legacy of building with vision, and we are thrilled to bring that expertise to such a landmark project in St. Thomas,” said Paul Henke, President at Magil Construction Canada Inc. “Our commitment to working with local trades and suppliers means this project will be built by the community, for the community, laying the groundwork for economic prosperity and job creation across Southwestern Ontario.”

Frank Blome, CEO of PowerCo SE, called the facility a “cornerstone” in building a global battery business in both Europe and North America, while St. Thomas Mayor Joe Preston said the project will be a “game-changer” for the region.

The company says the development will generate thousands of direct and indirect jobs, including construction roles, supplier opportunities and local business growth. Steelcon plans to employ more than 500 Canadian workers, with 30 from the London and Southwestern Ontario region.

PowerCo Canada was established in 2022 to oversee Volkswagen’s battery operations in North America. The St. Thomas facility will be its third and largest project worldwide.