Construction on the $5 billion battery plant was temporarily halted in May after Stellantis accused the federal government of failing to meet its financial commitments. The company cited the need for government support to ensure competitive pricing and state-of-the-art battery production in Canada after the introduction of the Inflation Reduction Act (IRA) in the US.
The company, in a joint statement with LG Energy Solution, confirmed that NextStar Energy, a joint venture with Stellantis and LG Energy Solution, has signed a binding agreement to resume construction. The details of the agreement have not been disclosed, but in June, François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, mentioned that he aimed to match the subsidies offered by the U.S. under the Inflation Reduction Act (IRA) to level the playing field, a sentiment that was echoed by Mark Stewart, the COO of Stellantis North America.
“We are pleased that the federal government with the support of the provincial government came back and met their commitment of leveling the playing field with the (Inflation Reduction Act),” said Stewart in a press release.
The EV battery factory, announced last year, is expected to generate 2,500 jobs, with financial support from all levels of government. Production is scheduled to start in 2024, and the plant aims to have an annual production capacity of over 45 gigawatt-hours (GWh).