Stellantis and LG Energy Solution (LGES) on May 15 ceased some construction of its planned electric-vehicle battery factory in Windsor, Ont., as it continues to spar with the federal government over financial assistance.
“As of today, the Canadian Government has not delivered on what was agreed to therefore Stellantis and LG Energy Solution will begin implementing their contingency plans. Effective immediately, all construction related to the battery module production on the Windsor site has stopped,” Stellantis said in a statement Monday.
Laurie Bouchard, spokesperson for Champagne, on May 15 did not respond directly to a question about Ottawa's willingness to match the US $10 per kWh module credit offered in the United States. Stellantis is now threatening to pull the plug on the module portion of the plant unless the deal with the government is sweetened to the level Volkswagen received this year, The Toronto Star newspaper reported May 12, citing unnamed sources.
The incentives nearly match those in the U.S. Inflation Reduction Act, which includes a US $10 per kWh incentive for battery module production. "The U.S. Inflation Reduction Act puts Canadian battery production at a significant disadvantage. Corresponding support is needed to level the playing field if Canada is going to be part of the emerging North American battery supply chain," said Brian Kingston, head of the Canadian Vehicle Manufacturers' Association, which represents the interests of and lobbies on behalf of the Detroit Three in Canada.
The city, he noted, “played a crucial role … assembling land and providing funding to support servicing and preparing the lands for the facilities.”
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