Demands by Stellantis and LG Energy Solution for battery plant incentives from the Canadian government that match those offered in the United States are a “risky ploy,” given the amount the companies have already invested in Windsor, Ont. and the automaker’s electric vehicle production plans, according to one U.S.-based auto analyst.
“They’re going to need those cells in just a few months when [EV] production starts in Windsor. They’re down that road far enough that it would be difficult for them to account for the loss of this [battery] plant,” said Sam Fiorani, vice-president of global vehicle forecasting at AutoForecast Solutions.
Ottawa recently pledged to match the $35 cell credit as part of its successful bid to attract Volkswagen Group to St. Thomas, Ont., but that deal did not extend to modules, according to Innovation, Science and Economic Development Canada . Stellantis announced in May 2022 that its nearby Windsor Assembly Plant will be retooled starting later this year. Battery-electric vehicle production is scheduled to begin in 2024, Fiorani said, but will rely on cells and modules from the new battery plant.
“If you were to pick up stakes and lose all these jobs, that’s not going to bode well when you come to the bargaining table in September. You don't want to make an enemy of the union, especially the year that you’re negotiating a new contract."
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