Skip to main content
Sister Publication Links
  • Automotive News
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
Subscribe
  • Subscribe
  • login
  • HOME
  • News
    • News by Brand
    • Auto Shows
    • Canadians Abroad
    • Photo Galleries
    • Automakers
    • Suppliers
    • Retail
    • Dealer Best Practices
    • Government Relations
    • Trade and Tariffs
    • Technology
    • Labour
    • Aston Martin
    • BMW
      • Mini
      • Rolls Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Ferrari
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Kia
    • Mazda
    • Mitsubishi
    • Nissan
      • Infiniti
    • Stellantis
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Fiat Chrysler
      • Jeep
      • Fiat
      • Lancia
      • Maserati
      • Ram
    • Subaru
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
    • Volvo
    • VinFast
    • Toronto Auto Show
  • Opinion
    • Blogs
  • Video
  • Podcasts
  • EVENTS & AWARDS
    • 2022 Auto News Canada All-Stars
    • 2022 Canadians To Watch
    • Notable Champions of Diversity
    • Best Dealerships To Work For
    • Canada Congress
    • Retail Forum: Toronto
    • Leading Women Roundtables
    • Embracing Diversity Roundtable
    • Embracing Diversity Roundtable Volume 2
    • EVs Decoded
    • 2023 Best Dealerships To Work For nominations
  • Jobs & Classifieds
  • +MORE
    • IN THE DRIVER'S SEAT
    • NEWSLETTERS
    • SUBSCRIBE
    • CLASSIFIEDS
    • PEOPLE ON THE MOVE
    • COMPANIES ON THE MOVE
    • WEBINARS
    • ADVERTISE WITH US
    • CONTACT US
    • DIGITAL EDITION
    • PUBLISHING PARTNERS
MENU
Breadcrumb
  1. Home
  2. Automakers
May 19, 2023 11:35 AM

Ontario offers more money to Stellantis for EV battery plant, Premier Ford says

The premier says that Ontario is putting more money on the table, though he wouldn't say how much, in order to protect jobs.

Staff and Wire Reports
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Doug Ford Campaigning in Windsor
    CITY OF WINDSOR/TWITTER

    Doug Ford has previously said he is disappointed with how the federal government has handled the issue since the province didn't make those production subsidy commitments, but says he is working with officials in Ottawa.

    ST. CATHARINES, Ont. — Ontario Premier Doug Ford says the province is offering more money in a bid to keep automaker Stellantis from pulling out of building an electric-vehicle battery plant in Windsor, Ont.

    Stellantis and LG Energy Solution announced last year that they were building the $5-billion plant, but have in recent days stopped construction and warned they were implementing contingency plans because the federal government hasn't lived up to an agreement.

    The CEOs of the two companies wrote last month to Prime Minister Justin Trudeau, saying Ottawa had confirmed in writing five times that it would match production incentives under the United States' Inflation Reduction Act, but has not delivered on those commitments.

    But the federal government has been pressuring Ontario to pitch in as well, saying the province also has to pay its "fair share."

    Ford has said he is disappointed with how the federal government has handled the issue since the province didn't make those production subsidy commitments, but said he is working with officials in Ottawa.

    “I will confirm we're putting more money on the table,” he said after an unrelated announcement in St. Catharines, Ont.

    “This is all about saving jobs and giving people the quality of life they deserve in southwestern Ontario.”

    The premier wouldn't say how much, in order to protect those jobs.

    Construction at a portion of the NextStar Energy plant – a joint venture between the automaker and LG Energy Solution (LGES) –   was halted May 15 after the companies accused the federal government of not living up to promises to match incentives contained in the U.S. Inflation Reduction Act (IRA). The automaker also warned that it was making contingency plans – a sign that it was willing to move the project across the border.

    The plant, expected to employ 2,500 people and slated to begin production next year, would be capable of producing 45 gigawatt-hours of lithium ion cells and modules annually to feed Stellantis plants in Canada and the United States.

    Construction on the module portion of the plant was stopped, but work continued elsewhere on site.

    The automaker has been accusing Ottawa of reneging on a previously made promise, alleging the federal government had “not delivered on what was agreed.”

    Stellantis’ frustration with the pace of federal government negotiations appeared to heat up after Canada signed a deal April 21 of this year with Volkswagen for a battery gigafactory in St. Thomas, Ont. The federal government has committed to provide up to $13.2 billion in manufacturing tax credits to VW through 2032, while Europe's largest carmaker is investing up to $7 billion to build the plant. The incentives nearly match those in the Inflation Reduction Act, which includes an incentive of US $35 per kWh of cell production and a US $10 per kWh incentive for battery module production.

    Cells and modules are two separate parts, both to be assembled at the Windsor site.

    Volkswagen will receive no federal support for battery modules made in St. Thomas., according to Hans Parmar, a spokesperson for Innovation, Science and Economic Development Canada.

    Meanwhile, the province put up $500 million for both deals, Ford previously said, and is ensuring roads and energy for the plants.

    Flavio Volpe, head of the Canadian Automotive Parts Manufacturers’ Association praised the premier.

    “Doug Ford stepping up in a crisis is on brand. And I wouldn’t expect the premier to make a statement if he wasn’t certain we solved this,” Volpe said. “We’re back on track. Hopefully we can pick up the momentum we started with this deal.

    “All we’ve signaled to other investors is that details matter. We don’t have a standing tax credit, so you’re going to have to negotiate terms, and get it right the first time.”

    The news pleased Unifor Local 444 President Dave Cassidy, who represents hourly workers at the Stellantis Windsor Assembly Plant, where minivans are currently made but will soon be swapped out for new electrified product.

    “Like my father always told me, stick and stay and it’s bound pay. I expected this. I knew he’d [Ford] come through. He’s been very clear about it,” Cassidy told Automotive News Canada.  Cassidy said he has been in regular contact with the premier. 

    “This is a great day, that we’ve just solidified this.”

    Stellantis on Friday said it will not be commenting.

    With files from Automotive News Canada and the Canadian Press.

    RECOMMENDED FOR YOU
    Honda to ramp up Civic output at Ontario plant
    Recommended for You
    Honda Civic on Lot
    Honda to ramp up Civic output at Ontario plant
    ReussCongressweb-MAIN_i.jpg
    GM's Reuss says company has laid groundwork for profitable EVs
    Mike_Cottone-MAIN_i.jpg
    Volvo Cars cuts jobs and expenses in U.S., Canada to prep for EV era
    cctv_vehicle-theft_1800x1200
    Sponsored Content: Many vehicle drivers in Ontario will be faced with a hefty insurance premium surcharge - on more vehicle models than you think – unless dealers do this
    Digital Edition
    Sept 2023 Issue
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    THE BIG STORY: Catch up on the top news of the week with our video round up. We'll email you a summary of the video and a link to watch.
    Get Free Newsletters

    Sign up today for our Weekly Newsletter, Daily Newsletter and Breaking News Alerts. We'll deliver the news you need to know straight to your inbox.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Subscribe Now

    An Automotive News Canada subscription includes print issues delivered to your doorstep and digitally to your inbox – plus unlimited, 24/7 access to our website.

    Subscribe Now
    Connect With Us
    • Facebook
    • Twitter
    • Instagram

    Our Mission

    The Automotive News Canada mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in Canada.

    Contact Us

    1155 Gratiot Ave
    Detroit MI 48207

    1-877-812-1257

    Email Us

    ISSN 2475-5001 (print)
    ISSN 2475-501X (online)

    Resources
    • About us
    • Contact Us
    • Digital Edition Archive
    • Advertise with Us
    • Reprints
    • Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Canada
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Ferrari
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Kia
        • Mazda
        • Mitsubishi
        • Nissan
          • Infiniti
        • Stellantis
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Fiat Chrysler
          • Jeep
          • Fiat
          • Lancia
          • Maserati
          • Ram
        • Subaru
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
        • Volvo
        • VinFast
      • Auto Shows
        • Toronto Auto Show
      • Canadians Abroad
      • Photo Galleries
      • Automakers
      • Suppliers
      • Retail
      • Dealer Best Practices
      • Government Relations
      • Trade and Tariffs
      • Technology
      • Labour
    • Opinion
      • Blogs
    • Video
    • Podcasts
    • EVENTS & AWARDS
      • 2022 Auto News Canada All-Stars
      • 2022 Canadians To Watch
      • Notable Champions of Diversity
      • Best Dealerships To Work For
        • 2023 Best Dealerships To Work For nominations
      • Canada Congress
      • Retail Forum: Toronto
      • Leading Women Roundtables
      • Embracing Diversity Roundtable
      • Embracing Diversity Roundtable Volume 2
      • EVs Decoded
    • Jobs & Classifieds
    • +MORE
      • IN THE DRIVER'S SEAT
      • NEWSLETTERS
      • SUBSCRIBE
      • CLASSIFIEDS
      • PEOPLE ON THE MOVE
      • COMPANIES ON THE MOVE
      • WEBINARS
      • ADVERTISE WITH US
      • CONTACT US
      • DIGITAL EDITION
      • PUBLISHING PARTNERS