HomeEconomyStellantis halts construction of its battery factory in Canada

Stellantis halts construction of its battery factory in Canada

“To date, the Canadian government has not respected the commitments made,” explained the automaker to justify its decision to suspend the construction of its battery factory in Canada.

Automaker Stellantis announced Monday it is halting construction of its electric vehicle battery manufacturing plant in Canada, due to a disagreement with the government over subsidies.

An investment of 3,600 million euros

The group had announced in March 2022, together with the battery manufacturer LG Energy Solution, to invest 5,000 million Canadian dollars (3,600 million euros) to build a large-scale plant in the Windsor region, in the province of Ontario.

The move comes a month after Canada agreed to give up to C$13 billion in subsidies to the German car group Volkswagen for the construction of a huge factory.

“We are very supportive of this investment and I am absolutely confident that we will reach an agreement,” Deputy Prime Minister Chrystia Freeland told reporters in Ottawa after the announcement.

Get the “best deal for Canadians”

Same story aside, the office of Industry Minister François-Philippe Champagne, who indicated on Monday that negotiations with the group were underway.

“Our main concern is and remains to get the best deal for Canadians,” Laurie Bouchard, a spokeswoman for the minister, told AFP.

The plant is targeting an annual production capacity of more than 45 gigawatt hours (Gwh) and is expected to create 2,500 new jobs.

The Canadian region of Windsor, located on the border with Michigan and the city of Detroit, is the center of the Canadian automotive sector.

For the past few years, Canada has been pushing to attract players in the electric vehicle sector, touting its tax incentives, clean energy, and many rare minerals.

Canada’s strategy is in line with that of its biggest trading partner, the United States, whose grand climate and inflation plan (IRA) provides billions in subsidies for green industries.

Author: obstetrics with AFP
Source: BFM TV

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