Stellantis reviewing offer that could determine future of Windsor EV battery factory

Stellantis is currently reviewing an offer that could determine the fate of its electric vehicle (EV) battery factory in Windsor, Ontario. The automaker had paused construction on a portion of their facility last month due to what it said was the federal government not delivering what it agreed to when it committed to building the $5 billion plant in March 2022.

According to Stellantis spokesperson LouAnn Gosselin, the company is conducting a thorough financial and legal review of the written proposal, and that a decision on whether to resume construction has not yet been made. (via Global)

The construction of the Stellantis plant, in partnership with LG Energy Solutions, was halted in May, shortly after the federal government announced a $13-billion deal with Volkswagen to establish an EV battery factory in St. Thomas, Ontario. In an effort to secure the project and compete with incentives offered in the United States under the Inflation Reduction Act, both the federal and provincial governments offered significant subsidies to Volkswagen.

Stellantis’ $5-billion deal was reached in March 2022 prior to the Volkswagen announcement, with the company subsequently saying the federal government has not fulfilled its obligations and has even threatened to relocate the plant elsewhere.

Ontario Premier Doug Ford has pledged to contribute one-third of the funding for a potential new agreement with Stellantis, while Champagne has assured Stellantis that Canada is prepared to match the subsidies provided by the U.S.

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