'Next few days': Feds and Stellantis/LG inching closer to finalizing Windsor EV battery plant deal
A deal between Stellantis/LG and the federal government to hammer out incentives to build and operate a 45 Gigawatt EV battery plant facility will be done this week, according to industry insiders.
“The resolution on this in the next few days. We've been very confident from the beginning of this quite public crisis, that Stellantis is committed to Windsor, and so is the federal and provincial government,” said Automotive Parts Manufacturers’ Association president Flavio Volpe during an announcement in London Wednesday.
Construction was halted at the module plant in Windsor on May 15, with Stellantis and LG putting out a statement warning they were implementing “contingency plans” because the federal government hasn't lived up to an agreement to match subsidies on offer in the United States.
Last Friday, Ontario Premier Doug Ford said the province would provide more money to secure the deal amid pressure from the federal government to pay its “fair share.”
Windsor-Tecumseh Liberal MP Irek Kusmierczyk said Wednesday negotiations are now in an advanced stage and the government is moving toward an agreement.
“We will have an agreement and we will have a battery plant built in Windsor. That, I am 100 per cent confident about,” Kusmierczyk said.
“This does take a little bit of time and I just wanted to emphasize as well that really it's about partnership. It's about all levels of government working together,” the MP added. “I was pleased to see that the Ontario government finally came to the table. That was an important move. And that's what gives me confidence. We're gonna get this agreement done in in a short fashion.”
Premier Ford was asked when the deal would be inked during a stop in London Wednesday and he indicated it’s out of his government’s hands.
“We're waiting for the federal government to finish off the deal, as you know, we put in our fair share, and now we're stepping up again, to put more money because it's all about the people,” Ford said. “It's all about making sure they have the jobs down in the Windsor region and right across southwestern Ontario.”
The original deal with Stellantis and LG, signed in March 2022, would have seen Ontario and Canada contribute $500 million each toward the capital costs of the new battery plant.
But the companies went back to Canada in August after the United States signed the Inflation Reduction Act into law, which offers companies production tax credits of up to $35 per kilowatt hour in each battery produced.
Volpe predicts the deal will get resolved this week.
”For lots of reasons, including the fact that Stellantis is on a production schedule and that plant, it took a long time to get to where it is, because it needs to make it for 2024 calendar year and 2025 model year, they can't just close it and go somewhere else and they don't want to,” Volpe said. “It anchors two assembly plants and a 650 person R&D centre. The federal government has been resolute that they want to do this deal that they just need to work out the last details.”
“What we saw was the kind of sausage making you normally see in private, go public,” Volpe added.
CTV News reached out to Stellantis Wednesday but the company declined to comment.
CTVNews.ca Top Stories
'Still so much love between us,' Sophie Gregoire Trudeau says of Prime Minister Justin Trudeau
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
What to know about avian influenza in dairy cows and the risk to humans
Why is H5N1, or bird flu, a concern, how does it spread, and is there a vaccine? Here are the answers to some frequently asked questions about avian influenza.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
opinion The special relationship between King Charles and the Princess of Wales
Royal commentator Afua Hagan writes that when King Charles recently admitted Catherine to the Order of the Companions of Honour, it not only made history, but it reinforced the strong bond between the King and his beloved daughter-in-law.
Pro-plastic lobbyist presence at UN talks is 'troubling,' say advocates
Environmentalist groups are sounding the alarm about a steep increase in the number of pro-plastic lobbyists at the UN pollution talks taking place this week.
'Too young to have breast cancer': Rates among young Canadian women rising
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
$70M Lotto Max winners kept prize a secret from family for 2 months
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Courteney Cox says her partner Johnny McDaid once broke up with her in therapy
Courteney Cox's longtime partner Johnny McDaid once broke up with her in a therapy session.