A multibillion-dollar deal that would see one of the world’s biggest automakers build an electric vehicle battery plant in Windsor, Ont., is now “in question,” town mayor Drew said on Saturday. Dilkens as he blamed the federal government for the standoff.
Stellantis, which makes Chrysler, Ram and Fiat cars, among others, challenged the federal government on Friday about the deal struck last year, saying it had begun developing “contingency plans.”
In March 2022, Stellantis and South Korean battery maker LG Energy Solution announced they would invest $5 billion to build a major battery manufacturing plant in the city as part of a retooling effort to focus on electric vehicles.
Construction is well advanced on the plant, known as NextStar Energy, which is expected to create 2,500 jobs.
The entire deal is now in question as the federal government is failing to deliver on its commitments, jeopardizing not only the completion of the electric vehicle plant, but also our efforts to attract additional investment to the region.
Excerpt from the press release by Drew Dilkens, Mayor of Windsor
“This counter-productive stalemate is creating significant challenges and jeopardizing thousands of jobs in our community. »
All levels of government were to provide financial support under the current deal, but the amount of taxpayers’ money pledged has not been made public.
Stellantis, for its part, expressed its displeasure with the federal government on Friday.
“To date, the Canadian government has not respected what was agreed. Therefore, Stellantis and LG Energy Solution will immediately begin implementing their contingency plans,” spokeswoman LouAnn Gosselin said.
She declined to detail those contingency plans.
Negotiations with the company are continuing, the federal government said.
“We continue to negotiate in good faith with our partners,” said Laurie Bouchard, spokesperson for Industry Minister François-Philippe Champagne.
“Our top priority is and remains getting the best deal for Canadians. »
The province did not immediately respond to a request for comment.
Mayor Dilkens said the city provided funds to prepare the site for the facility.
“As the host community, the City of Windsor is most at risk, and we anticipate that the spirit of partnership and collaboration will put us back on track to deliver on this important project,” said Mr. Dilkens.
The potential Stellantis project isn’t the only major manufacturing initiative underway in the province. The federal and Ontario governments recently reached an agreement with Volkswagen to build an electric vehicle battery plant in St. Thomas, which includes billions of dollars in government grants.