(Ottawa) Stellantis and LG Energy Solution say their electric vehicle battery plant in Windsor is back on track after reaching a “binding” funding deal with the governments of Canada and Ontario.
The two companies halted construction earlier this year to negotiate government funding equivalent to what the United States would provide under its new Inflation Reduction Act.
In a statement released late Wednesday, the two companies said construction of the plant, which they call NextStar Energy, will resume immediately.
The plant was first announced in the spring of 2022. Ottawa and Ontario were to help fund the construction to the tune of $500 million each.
Stellantis and LG Energy returned to the negotiating table a few months later, when the US Inflation Reduction Act put billions of dollars in production tax credits on the table for battery makers across the country. south of the border.
In March, Canada struck a deal that will see Volkswagen get up to $13 billion in production subsidies for batteries it will produce at a planned plant in St. Thomas, Ontario. Stellantis and LG Energy wanted a similar deal to pursue their plant project in Windsor.