Construction stops at Windsor EV battery plant site, Stellantis says feds have 'not delivered'

Stellantis has confirmed that construction has stopped at the Windsor EV battery plant site.

In a statement Stellantis said “the Canadian Government has not delivered on what was agreed to therefore Stellantis and LG Energy Solution will begin implementing their contingency plans.”

“Effective immediately, all construction related to the battery module production on the Windsor site has stopped,” said a revised statement on Monday.Stellantis and LG Energy Solution EV battery plant construction site in Windsor, Ont., on Monday, May 15, 2023. (Sijia Liu/CTV News Windsor)

News of the potential stoppage of the project came after the Toronto Star reported Friday that Stellantis may scrap plans for the Windsor plant if provincial and federal governments did not boost funding. This, after Volkswagen was offered hefty subsidies from the feds — to the tune of $13 billion to build in St. Thomas.

Ontario Premier Doug Ford told reporters Monday he’s concerned.

“It really worries me. You know, we need the federal government to step up as they did for Volkswagen. We've signed a deal with Stellantis months ago, quite some time ago actually, on infrastructure - and we gave them the exact same amount as we gave Volkswagen.”

He added that they need the federal government to come to the table and show their support like they have all along.

“They've been great partners, by the way, and every deal that we made, so we need them to work with Stellantis and I know the mayor Dilkens is quite concerned as well and so am I.”

A statement from the mayor’s office said its focus is on finding a solution that will benefit the community.

“The City of Windsor is fully committed to utilizing all available resources in order to gather vital information, stay well-informed, and be prepared to offer assistance in any capacity necessary to reach a resolution to the impasse between Ottawa and all involved parties," the statement said. "The potential impact on our community is significant, with thousands of jobs at risk. Windsor has fulfilled its responsibilities and commitments for the NextStar EV plant, and negotiations between the parties are ongoing. Our collective focus remains steadfast on assisting to find a constructive solution for the benefit of our community.” 

Windsor-Tecumseh MP Irek Kusmierczyk said Saturday that he is confident construction will continue.

“I want to reassure residents in our community that we are absolutely committed to this project,” Kusmierczyk said.

Kusmierczyk stressed that Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland are also engaged in discussions to reach an agreement.

“Everyone recognizes, all the partners recognize, that this is a generational investment and really, this is the future of the auto sector,” Kusmierczyk said. “It's the future of Canada and our community and I can tell you that all partners are absolutely committed to this project, both to the battery plant investment and also the investment at Windsor assembly plant.”

Freeland said Monday she is "confident" the deal will go through, but is hoping the province will also step up. 

"When it comes to Stellantis, we are very supportive of this investment and I am absolutely confident that we're going to get a deal. But I also want to point out that the resources of the federal government are not infinite," she said. "And we are counting on Ontario to do its fair share, and we're counting on Stellantis to be reasonable."

In an emailed statement to CTV News Monday, a spokesperson for Francois-Philippe Champagne, federal minister of innovation, science and industry, said the government is continuing negotiations. 

“The auto industry is crucial to the Canadian economy and to the hundreds of thousands of Canadian workers in this sector. That's why Minister Champagne has worked tirelessly to secure the future of Canada's auto industry,” the statement said. “We continue to negotiate in good faith with our partners. Our top priority is and remains getting the best deal for Canadians.”

In a letter released on Saturday, Windsor Mayor Drew Dilkens said he expects the federal government to follow through on commitments that would see one of the world's biggest automakers build an EV battery plant in east Windsor.

"It’s clearly very, very disturbing. And I would call this the worst political theatre play out that I could ever imagine," Dilkens said Monday. 

"Now we’re at a point where you have probably $100 million invested in the ground pile driving and construction of a building so far, that to suggest that, you know, this is too rich of deal now that the federal government can’t afford it. Well guys, we’re past that point, you made the commitment, honour your darn commitment.

Meantime, Windsor West MP Brian Masse said he’s been in touch with the mayor’s office, local Unifor leadership, and the federal the Minister of Innovation, François-Philippe Champagne.

“It's concerning there's no doubt,” Masse told CTV News. “But I'm not surprised that there'd be some type of attempt to renegotiate or do something different just because we don't have a national auto policy.”

- With files from CTV News Windsor's Chris Campbell.