Stellantis’ ambitious electrification project includes construction of several battery plants in Europe and America. One of them must be done In Canada through a joint venture with LG Energy Solution announced in October 2021. The area near Windsor, Ontario. However, apparently, the construction of the plant would have been blocked.
According to Reuters, there will be disagreements with the federal government over promised subsidies. As emphasized by the representative of the automotive group, construction work has almost completely stopped. Stellaantis says the government has not followed through on what was agreed to last year.
The plant is expected total investment of over 5 billion Canadian dollars (about 3.4 billion euros). Investments to which he must have The federal government of Canada also contributes. Apparently, negotiations are underway between the government and the leadership of Stellantis. Authorities say they are confident the problems can be resolved. Finance Minister Chrystia Freeland commented:
I am absolutely sure that we will agree. But I also want to emphasize that the resources of the federal government are not unlimited.
Obviously, the Ontario government is very concerned about what is happening. Ontario Premier Doug Ford said:
This worries me a lot. We need the federal government to step up, as was the case with Volkswagen.
Speaking of Volkswagen, the Canadian federal government recently agreed to provide up to 13 billion Canadian dollars in subsidies to build a battery plant for the German group.
Let’s see what happens. It’s hard to think that in the end we won’t be able to find agreement again. If not, then Stellantis and LG should reconsider their plans to build this plant. We remind you that the plant should be put into operation in the first quarter of 2024. In addition, the plant will create 2,500 new jobs.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.