2023-05-15 21:35:55
Automaker Stellantis announced on Monday that it is halting construction of its electric vehicle battery manufacturing plant in Canada, due to a disagreement with the government over subsidies.
The group had announced in March 2022, with the battery manufacturer LG Energy Solution, to invest 5 billion Canadian dollars (3.6 billion euros) to build a large-scale plant in the Windsor region in the province of Ontario.
“To date, the Canadian government has failed to meet the commitments made. As of now, all construction work related to the production of battery modules at the Windsor site has been halted,” the group wrote in an email. at AFP.
The move comes a month following Canada agreed to grant up to C$13 billion in subsidies to 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 following the announcement.
“But I also want to emphasize that the resources of the federal government are not endless and we rely on Ontario (the provincial government) to do its fair share and on Stellantis to be reasonable,” she added.
Same story on the side, the office of the Minister of Industry, François-Philippe Champagne, who indicated Monday that negotiations were underway with the group.
“Our main concern is and remains to get the best deal for Canadians,” Laurie Bouchard, the minister’s spokesperson, told AFP.
The plant is aiming for an annual production capacity of more than 45 gigawatt hours (Gwh) and was 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 hub of the Canadian automotive sector.
For the past few years, Canada has been pushing hard to attract players in the electric vehicle sector, touting its tax incentives, clean energy and many rare minerals.
The Canadian strategy is in line with that of its largest trading partner, the United States, whose major climate plan and once morest inflation (IRA) provides billions in subsidies for green industries.
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