Canada mimics U.S. strategy by offering nearly $30 billion for Stellantis, Volkswagen battery plants – by Naimul Karim (Financial Post – July 7, 2023)

Canada, Ontario providing Stellantis up to $15 billion

Seven weeks after the fate of Canada’s first electric-vehicle battery plant was thrown into jeopardy, a new government agreement with the plant’s main investors ensures the project is back on track to start production in 2024.

The Windsor, Ont., lithium-ion battery plant, a joint venture of Stellantis NV and LG Energy Solution Ltd. was first announced in March, but construction was halted in May after Stellantis said the federal government had not met its financial commitments.

In a statement on July 6, the governments of Canada and Ontario confirmed they would provide the project with performance incentives worth up to $15 billion provided the companies meet certain conditions.

More specifically, the federal government has agreed to provide the project with a performance incentive on a per-unit production basis of up to US$45 per kWh. The overall incentive will be capped at $15 billion, one-third of which will be paid by Ontario.

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