A Stellantis-LG Energy Solution combine that is setting up a battery plant in Canada announced it would resume construction after the country increased subsidies for the project. The companies announced that the $5 billion plant in Windsor, Ontario, would being battery production in 2024 targeting an annual production capacity of around 45 gigawatt hours.
Stellantis and LG Energy had halted construction at the plant in May after asking Canada to match the support being received in the US under the country's new Inflation Reduction Act. "We are pleased that the [Canadian] Federal government with the support of the Provincial [Ontario] government came back and met their commitment of leveling the playing field with the [US] IRA," Mark Stewart, Chief Operating Officer at Stellantis for North America, said in a statement.
Canada is home to a large mining sector, including lithium, nickel and cobalt. The North American nation is trying to woo companies in the EV supply chain as it seeks to become a global battery hub.
In a joint statement, Canadian Industry Minister Francois-Philippe Champagne and Finance Minister Chrystia Freeland said, "This agreement is good for workers and it is good for Canada."