Volkswagen’s battery-making subsidiary announced Thursday that it now expects to open its $7-billion gigafactory in St. Thomas, Ont., in 2029 amid lower demand for electric vehicles. (The Logic)

Talking point: PowerCo said the new timeline reflects changing market demand, new technology and the German carmaker’s long-term strategy. “This is about getting the pacing right—not stepping back—to protect our long-term investment, support regional jobs, and position Canada, Ontario, and St. Thomas to benefit in a dynamic and evolving market,” said chief procurement officer Joel Karlsberg. The company also said it chose EllisDon as the general contractor for the construction project, which will employ 1,300 people at its peak. The federal government pledged $700 million to help Volkswagen build the plant announced in March 2023, plus production subsidies worth up to $13 billion. Ontario committed another $500 million. PowerCo’s St. Thomas facility was among the projects in the Canada Investment Summit prospectus seeking financing, with expected capital expenditures of up to US$5 billion.

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