AGREEMENT REACHED FOR WINDSOR EV BATTERY PLANT

By Anne Bourgoin

Stellantis and LG Energy have finally reached an agreement with the Canadian government. The two companies were seeking Canadian government funding equivalent to that offered by the United States under the IRA (Inflation Reduction Act). The construction of the EV battery plant is back on track in Windsor.

This binding financing agreement mirrors that reached in March between Canada and Volkswagen. It will enable Stellatis and LG Energy to obtain about $15 billion in tax relief. According to Vic Fedeli, Ontario’s Minister of Economic Development, this figure will be reached within 10 years.

“We are pleased that the federal government, with the support of the provincial government, has reversed its decision and lived up to its commitment to level the playing field with the IRA,” said Mark Stewart, COO of Stellantis in North America.