PowerCo Canada has awarded two major contracts for the construction of Volkswagen’s electric vehicle gigafactory in St. Thomas.

The company will work with Steelcon Group of Companies for the structural steel component of the project and with Magil Construction Canada for the foundations work. Both are Canadian-owned businesses.

PowerCo says these milestones set the stage for groundbreaking at the site in the coming weeks, marking another major step forward for Canada’s largest-ever electric vehicle battery manufacturing facility.

“Today’s announcement marks another pivotal moment for the St. Thomas gigafactory, propelling the project into its next phase”, said Frank Blome, CEO of PowerCo SE. “The St. Thomas gigafactory is a cornerstone in our ambition to build a global cell company with strong roots in Europe and North America, safeguarding direct access to one of the key technologies of the 21st century. By leveraging innovative and skilled local expertise, St. Thomas will strengthen Canada’s position in the global EV battery manufacturing industry.”

Steelcon will deploy a dedicated team of over 500 skilled workers directly on the project, including more than 30 from London and the broader southwestern region.

The foundations work is one of the largest packages of its kind ever awarded in southwestern Ontario. It includes construction of foundations for three buildings at the St. Thomas site, encompassing a total floor area of 850,000 square feet. The first concrete pour is anticipated in the coming weeks and will set the pace for the continued rapid progress to build the gigafactory.

“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 Magil President Paul Henke. “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.”

The announcement of the contract awards follows the kickoff of PowerCo’s recruitment campaign to fill hundreds of jobs at the gigafactory this year. Once fully operational, the plant will support thousands of direct and indirect jobs in the region.