Following last week’s PowerCo announcement, MP Andrew Lawton cautioned that the community has the right to know what’s being done to ensure the promised jobs materialize.You can read last Saturday’s item here.
This comes in light of the federal government offering up to $13 billion in subsidies.
On Sept. 24, Powerco announced that production at the massive EV battery factory in St. Thomas has been pushed back until some time in 2029, although the move is not being painted as a step back.
Lawton, Conservative MP for Elgin-St. Thomas-London South, said it is important to acknowledge work is proceeding at the site.
“Look, we have to be very clear to acknowledge that there is work going on. And even the announcement from PowerCo indicates they intend to see this project through.
“But I also think we need to acknowledge all of the planning that this community and this region have done in anticipation of this.
“We look at the effect this has had on housing, on infrastructure. The community moved mountains to make this happen.
“The federal government has offered up $13 billion in subsidies. And I think it’s right to question what’s being done to ensure that the jobs that we were promised materialize.”Lawton added, however, that people want assurances that there will be real movement on the $7 billion gigafactory.
“As the federal MP, my role here is making sure that the federal government, which sold not just to people in St. Thomas and Elgin, but to Canadians, that this was going to be an investment that would be on track, would support jobs, would support domestic manufacturing. We want to know what’s being done to actually make sure that this is seen through.”
He stressed, “We know that this plant was meant to serve two EV plants in the U.S., one of which is no longer doing EVs. And I think that was when a lot of people locally started to wonder what reassurances we were going to get.
“I know that St. Thomas Economic Development is still very bullish on this. I was chatting with Sean Dyke this morning, and they’re acknowledging that this will allow for better technology to be used.
“I think the community has a right to be assured, not just by PowerCo and Volkswagen, but also by multiple levels of government that have been involved and invested in this project.”
“I want to make sure that the community that has moved mountains to make this happen is getting the 3,000 jobs that made all that worthwhile. And certainly that the federal government is holding up its end of the bargain and actually making sure that it fulfills its commitments.”
Lawton reiterated that he welcomes the jobs associated with the gigafactory; however, what are the full implications of this two-year delay?
“I think the community has a right to be assured, not just by PowerCo and Volkswagen, but also by multiple levels of government that have been involved and invested in this project.
“Let me say, just lest there be any doubt, I welcome anything that creates jobs in the community. I just want to make sure we have a viable path forward for those jobs. And I know that some folks in the auto industry have been just very skeptical in general of the EV market and any plans predicated on a belief that that market will bloom because we just haven’t seen that on paper.
“And if Volkswagen wants to wait and see, fine. We just want to know what the implications are going to be for us locally.”
POWERCO RESPONDS TO MP LAWTON’S COMMENTS
A week after the announcement that production at the massive EV battery gigafactory in St. Thomas has been pushed back two years, PowerCo stresses the decision is about getting the pacing right as construction enters its next phase.
In a statement emailed to myFM earlier this week, PowerCo advises that it “Is continuing construction while aligning production timing, technology and future scale with evolving market demand and the Volkswagen Group’s long-term strategy.”
The rendering below depicts one of the six proposed production blocks on the site.
The PowerCo statement is in response to comments on myFM from MP Andrew Lawton that the community has the right to know what’s being done to ensure the promised 3,000 jobs materialize. Particularly in light of the federal government offering up to $13 billion in subsidies.
The PowerCo statement continues, “St. Thomas is expected to begin operations in 2029 to accommodate next-generation battery technology, while retaining flexibility to scale over time. The phased approach is about getting the pacing right, not stepping back. It preserves flexibility while supporting skilled trades, regional suppliers and economic activity in Southwestern Ontario.”
And to clarify, “Work on site is actively moving forward. This update is about getting the pacing right as construction enters its next phase, rather than a delay or stepping back from the project.
“Production at the St. Thomas facility is expected to begin in 2029 to accommodate next-generation battery technology, while retaining flexibility to scale over time.”
“Site work is continuing at pace, with EllisDon now on board as general contractor to lead core structural and site-wide infrastructure phases. The on-site workforce is expected to ramp up toward approximately 1,300 workers at peak construction.
“PowerCo is implementing a phased build approach that aligns production timing, scale and configuration with market demand and the long-term evolution of the industry.”
The statement concludes, “Production at the St. Thomas facility is expected to begin in 2029 to accommodate next-generation battery technology, while retaining flexibility to scale over time.”
‘THEY DIDN’T CANCEL THE PROJECT’ – DAVID GOODWIN
Responding to the PowerCo announcement, David Goodwin, who has put forward his nomination to become the Liberal candidate for Elgin-St. Thomas-London South in the next federal election, sees it as a long-term strategy for PowerCo.
“It is not something that is one or two years. And so I think what’s important for people to remember is they didn’t cancel the project. They didn’t sell the property. They’re still moving forward. And as a matter of fact, they just signed a huge agreement with EllisDon to get to the next phase of building.
“And that’s 1,600 jobs alone. And so I think, if you look at the U.S., you’ve got Donald Trump and his whole mandate about oil and gas, not a fan of electric cars, whereas you see PowerCo looks at the global situation and takes a slower approach.“But I think that revised timeline, like two years, is going to allow them to respond to that change in EV demand. Last year, 20 per cent of all cars sold globally were electric. It’s now 25 per cent. It’s the fastest-growing segment.
“And so what I think people sometimes forget is this PowerCo plant in St. Thomas is not just for North America. It’s global. And so I think people will need to realize that this is long-term strategy. And I have full faith, as (St. Thomas Mayor) Joe Preston has mentioned, Sean Dyke and others that are involved, that this project is still 100 per cent going ahead, just a little bit slower rollout for the next two years.
“I think they call it next-gen battery technology is the one they’re talking about now. Yeah. You look at cars, the real magic is the distance that electric cars can go, and they’re going further and further on a charge. And so, again, this is a strategy for the next 30 years. And they have doubled down on this with the continued construction. And so I think people need to just realize it’s long-term, right?”
“PowerCo, I think we still have a very bright future with them.”
Could the delay become an election issue?
“It really wasn’t an election issue in the last campaign at all. And if they hold true to starting production in 2029, I don’t think that will be an issue at all, really.”
And then there is the Trump factor.
“No question. I think Trump has two and a half years left, and there is a world after Trump. You look at the tariffs. People are very concerned about the tariffs, but that’s not a sustainable model for the U.S. Once Trump is no longer in office, I think the next president is going to have a completely different direction.
“I think chances are it’s probably going to be global, right? And so a lot of companies in Canada are pausing because of the concern of the tariffs. It’s having a real impact. You saw with the steel company in Hamilton (Stelco) that is having to lay off workers.
“And that will happen throughout southwestern Ontario. And it’s a devastating effect. But we have to realize that this really is because of one person, Donald Trump. I mean, it will be one for us to talk for quite a while. PowerCo, I think we still have a very bright future with them.”
THE DOORS ARE OPEN AT HIGHVIEW HIDEAWAY
They are the second largest affordable housing provider in Elgin county and on Sept. 16, Eastwood Housing Corporation hosted a grand opening ceremony at their 12th residential project.
The event drew a significant gathering to the five-storey, 82-unit complex known as Highview Hideaway, at 220 Highview Drive.
The building includes one- and two-bedroom rental apartments, all at 80 per cent or lower of CMHC market rates.Eastwood Housing CEO Jon McCurry (pictured below during construction) advised that tenants have been moving in steadily over the summer.
“So September 16th, 2026, we’re officially open. We welcomed our first tenants three months ago on June 15th, and as I mentioned earlier, probably by the end of October, 70 per cent full, and it will just continue to fill as we move forward.”
All of the units are built to the Net Zero Ready Standard with the goal of full Net Zero in the future through the use of solar energy.
McCurry explained why the building was capped at five stories.
“I think this lot was zoned to nine floors, but there was a lot more red tape, if I can call it that, to get to nine. Where five, it was sign and go. So we just signed and went.”
McCurry pointed out that the apartments on Highview will serve as a template for future builds.
“The idea is, once we get this building up and running, we want to design a building we can just replicate. This would be a template and, God willing, we would put up another one, and then another one and another one.
“That is the plan. We are looking for land. And then everyone’s saying, well, what will you do? I said, well, we’ll replicate it, but will it be five stories? I don’t know. It might be three. It might be one, depending on where the land is.
“And it has to fit in the neighbourhood because it can’t stand out. It has to because it is a community and we want it to become part of the community. Not dominate.”St. Thomas Mayor Joe Preston added that the latest Eastwood project is a key piece in the city’s housing puzzle.
“We’ve got to have so many buildings on the go to accomplish what we want to do at the end of the day. And currently, there are a couple more going on. And we have to keep that method going.
“Eastwood’s a pretty popular landlord both on the affordable side and on the market rent side, and that’s truly how they do it so well. Some people are paying the real market rent to help cover the affordability side of what they do in their Christian charity side.”
However, Preston stressed, you can’t rest on your laurels when it comes to providing affordable housing.
“I’ve talked to many other municipalities, and we say you’ve got to have a couple of projects going on the whole time. If you rest on your laurels, you’re going to fall further behind.
“There’s a true inflationary cost thing that’s causing housing affordability to continue to get worse. But this council has been like the world’s greatest in getting things done.”
A key attraction at Highview Hideaway, noted McCurry, is the location.
“It’s fantastic. We’re on a bus route, the mall’s (The Elgin Centre) right there, you are within walking distance of every amenity you need, so, yes, it is a great location.”
Amenities include an on-site community room, storage lockers, laundry facilities and pickleball courts.McCurry concluded, “So it’s been a great support from the city, all the community partners, the contractors, the consultants, the engineers, the trades, just an absolutely wonderful experience.
“I’ll be very honest, I’m gonna go home tonight and sit in my living room and think, Wow, it’s done. Because it just seemed like this is what we lived and breathed every day.”
CANDIDATE PROFILE: CHRIS DESLANDES, CITY OF ST. THOMAS
Deslandes was born in Tillsonburg, but has lived in St. Thomas for more than 30 years.
He and his wife have one daughter, and he previously owned Northside Glass and Mirror. He still works full-time in the glass industry in London.
He is the first in his family to seek political office, although he says he has been thinking about it for some time.
“I was just going to do it the next term. Just kind of said, it’s time. I am committed to city council if it works out that way. I’ve always put both feet forward.
“I also have a small-business eye for value. And I would like to bring practical and common sense to council. I was always taught that if you treat $100 like $1,000, then you’re off to the races.
“If you look at the city finances, there’s got to be places to cut. Or look at the contracts, the upcoming projects. Is there any flexibility? Then we should be taking a look at it.”
We asked him whether he thought the last couple of councils have been fiscally responsible.
“And I want to make sure that the residents are getting the best value. I want to do the work for the residents of St. Thomas. And they need to know what is going on.”
“That’s a tough question because I respect the council for what they have been dealing with – difficult decisions. I know that we, as humans, all make mistakes, but I want accountability.
“If I ask myself to be accountable, I want others to be accountable, too.”
The conversation shifted to the downtown core.
“There’s a lot going on downtown, but I think what we should be able to do is think outside the box.
“You can see that there’s plywood on windows and things like that. And that’s because of the landlords; they’re tired of fixing broken glass.
“And yes, there is homelessness. There are other steps that they’ve already taken with tiny homes. We have to consider more, but like you said, everything’s got to be affordable.”
He bemoanes the lack of a high school in the city’s north end.
If elected later this month, Deslandes would like to turn his attention to finances.
“Getting an understanding of the finances and where the commitments are and upcoming projects. And, like I said before, the flexibility on these projects. And I want to make sure that the residents are getting the best value.
“I want to do the work for the residents of St. Thomas. And they need to know what is going on.”
The backbone of his campaign is several thousand flyers he will be distributing.
“All I can do is put the name out there.”
He was at last month’s candidate meet and greet, and he plans to be at the Oct. 7 event at Memorial Arena.
“It’s always interesting to get feedback from people and get their insight and let them pick your brain as to what they would like to see. And I want to address their concerns.”
FOR THE CALENDAR
The St. Thomas & District Chamber of Commerce is hosting a Municipal Candidates Meet & Greet next Wednesday, October 7, at Memorial Arena.
Candidates from the City of St. Thomas, Municipality of Central Elgin and Township of Southwold have been invited to participate in a trade show-style format where residents can visit with each of them.
The free event runs from 5 to 8 p.m.
The Aylmer Express is hosting an all-candidates meeting for Central Elgin on Thursday, Oct. 8, at the Masonic Centre, 42703 Fruit Ridge Line, from 7 to 9 p.m., with doors open at 6:30 p.m.
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And a reminder, I can be heard weekday afternoons as news anchor and reporter on 94.1 myFM in St. Thomas. As always, your comments and input are appreciated.
