Stellantis and LG have halted construction of a joint venture battery factory in Windsor, Ontario, arguing that the Canadian government has failed to meet certain obligations, Bloomberg second report.
The report cited an email from a Stellantis spokesperson confirming that the construction of the plant, expected to be by the automaker. First large-scale battery production facility in North America, has stopped. The email also says that Stellantis and LG are reviewing contingency plans because “the Canadian government has not followed through on what was agreed upon.”
Announced in March 2022, the factory is touted by Stellantis and LG as a $5 billion investment, likely as the Canadian government will roll out a financing package. A spokesman for Canadian Industry Minister Francois-Philippe Champagne said the government was still in talks with Stellantis and LG, but did not say how much the government had offered to contribute to the project.
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Stellantis previously said the 100,000-square-foot Windsor plant will be completed by the end of 2023 and will serve as a technology hub for “development and validation of BEV, PHEV cells, modules and battery packs. and advanced HEV”.
Since the announcement of that plant, Volkswagen has also chosen Ontario to produce batteries under its contract. PowerCo . unit. Unlike the Stellantis deal, the VW battery plant deal comes after the US Inflation Reduction Act (IRA), which forced the Canadian government to offer more incentives, said Flavio Volpe, president of the Manufacturers Association. auto parts (APMA) said. Canada said in an interview with Bloomberg. Volpe said he hopes Stellantis and the Canadian government will eventually reach an agreement.
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“We’ll be making batteries in Windsor for the cars that my members supply around this country,” Volpe told Bloomberg. Canada hosted a General Motors plant for BrightDrop . Electric Truck. Ford has confirmed plans to build electric vehicles at its Oakville, Ontario plant, starting sometime in the middle of the decade.
Stellantis also major investment in Canadian EV manufacturingHowever, this could at least affect the production volume of that effort in the near term. What effect could that have on the timelines for upcoming Stellantis EVs like RAM 1500 REPLACEMENTS pickup trucks and Dodge electric car?
