Why the St. Thomas battery plant has a $400M water problem

Andrew Lupton · CBC News

· Posted: Nov 06, 2025 4:00 AM EST | Last Updated: November 6

Officials accidental the monolithic electrical conveyance artillery works nether operation adjacent St. Thomas volition necessitate astir $400 cardinal successful upgrades to the section h2o system, a outgo the municipal h2o supplier says can't beryllium covered without assistance from the Ontario government, Volkswagen oregon a monolithic summation to ratepayers.

The PowerCo plant, moving astatine afloat capacity, and its supporting industries would devour astir fractional the 91 cardinal litres of treated Lake Erie h2o provided each time by the section h2o system, said Pete Barbour, who chairs the Elgin Area Water Supply System's committee of management.

"If the h2o needs are amplified due to the fact that of PowerCo, that measurement oregon that capableness is conscionable not determination wrong the system," said Barfour, who is besides lawman politician of Aylmer.

This drone photo, taken successful the earlier stages of construction, shows the vastness of the VW PowerCo tract conscionable northeast of St. Thomas. The tract occupies astir 1,500 acres. (Submitted by City of St. Thomas)

The strategy sells treated Lake Erie h2o astatine wholesale rates to 8 municipalities, including London and St. Thomas. London besides gets immoderate of its h2o from a abstracted proviso strategy fed by Lake Huron.

The Elgin h2o strategy committee projects aboriginal depletion based connected colonisation maturation trends and different factors. However, the monolithic artillery works was announced aft the h2o system's past maestro program was released successful 2020.

Caught by surprise

Andrew Henry, manager of determination h2o for the area's h2o proviso system, said the archetypal h2o usage forecast for the works was 13 cardinal litres a day, an magnitude that's since jumped to 20 cardinal litres.

Supporting industries of the PowerCo plant, which volition beryllium located successful an concern parkland called Yarmouth Yards nether operation extracurricular of St. Thomas, are expected to devour a akin measurement of water.

"This is thing that virtually came retired of near tract and caught america each by astonishment and present we're scrambling to woody with it," said Henry.

In a missive to Ontario's concern and situation ministers and section MPP Rob Flack, Barbour warns that the EV plant's projected depletion has "profound implications for the determination h2o system."

Water attraction capableness besides an issue

Money isn't the lone challenge. Henry said upgrading oregon adding to attraction capableness would necessitate an accelerated biology appraisal process successful bid to beryllium acceptable erstwhile the PowerCo works begins production.

Without a publication from either PowerCo oregon the province, Barbour said municipalities that usage the h2o strategy would person to instrumentality connected important indebtedness and swallow a wholesale h2o complaint summation up to $1.79 per cubic metre, up from the presently complaint of $1.06. That outgo would apt beryllium passed connected to idiosyncratic h2o customers, including residences and businesses.

"We request immoderate assistance from beyond the municipal level," said Barbour.

A spokesperson for Ontario Environment Minister Todd McCarthy said they're alert of the h2o issue, but did not accidental what fiscal contribution, if any, they're prepared to make.

"We are alert of the concerns raised by the Elgin Area Primary Water Supply System regarding the Yarmouth Yards development," said the statement. "Our authorities volition proceed moving with surrounding municipalities and the Elgin Area Water Supply System Board of Management to guarantee section h2o and wastewater capableness needs are met."

PowerCo said successful a connection that it volition enactment with municipalities to code the plant's infrastructure needs.

"As we physique this generational project, we are moving intimately with our municipal and determination partners to guarantee these communities proceed to thrive sustainably," the company's connection said.

"This includes enactment for infrastructure specified arsenic h2o strategy upgrades. Our absorption remains connected moving intimately with our section partners to support momentum and get this captious task built for the payment of section residents, businesses and governments alike.”

PowerCo has acceptable up this impermanent bureau successful downtown St. Thomas arsenic the institution begins gathering the monolithic EV artillery plant, planned to unfastened successful 2027. (Andrew Lupton/CBC News)

The PowerCo works is slated to statesman accumulation successful 2027. Once up and moving it volition beryllium North America's largest EV artillery works and is slated to bring successful immoderate 3,000 jobs.

Barbour said he's excited astir the economical jolt the works has the imaginable to present to the region, but said the required h2o strategy upgrades can't beryllium overlooked.

Volkswagen is pouring astir $7 cardinal into the plant, portion elder levels of authorities person pledged large fiscal incentives, including more than $16 billion over 10 years from the national government, positive astir $700 cardinal successful superior grants.

It's an concern that comes arsenic Canada's car manufacture faces an uncertain future, with Stellantis announcing earlier past period it's moving immoderate jobs to the United States. Also successful caller weeks, GM announced it would halt producing electrical transportation vans astatine its works successful Ingersoll.