On Wednesday, the Canadian federal government and the province of Ontario signed on New agreement with Stellantis-LG Energy Solution (LGES), which is increasing state support for building a battery factory for electric vehicles (EVs), Stellantis said.
cNextStar Energy battery plant construction in Windsorwith the start of production scheduled for 2024 and with the creation of about 2,500 new jobs through which they aspire to have an annual production capacity of more than 45 GWh, according to the statement.
Stellantis had halted plant construction in May Batteries for electric cars 5 billion Canadian dollars ($3.7 billion) across the Detroit River in Windsor, Ontario, claiming that Canada did not provide the promised financial support.
Stellantis and LGES toIt announced the investment in the plant in March last yearBut tensions arose when the US passed the Inflation Reduction Act (IRA) in August, which includes a huge package of incentives for clean-tech companies.
“We are pleased that the federal government, with the support of the territorial government, has made good on it Commitment to equal opportunity with the IRA”said Mark Stewart, director of North American operations for Stellantis.
In April, Canada agreed to give up to C$13 billion in funding Manufacturing tax credits and a C$700m grant to entice German carmaker Volkswagen to build its own battery factory in the country.
This is the largest investment ever in Canada’s electric vehicle supply chain.
The country, is home to an important mining sector that exploits minerals such as lithium, nickel, and cobaltseeks to attract companies from all links in the supply chain Electric vehicles through the multi-million dollar Green Technology Fund.