More money from Ontario needed to end 'stalemate' over Stellantis battery plant: feds

OTTAWA -

Industry Minister Francois-Philippe Champagne says Ontario needs to bring more money to the table to end the "stalemate" with Stellantis over its new electric-vehicle battery plant.

The automaker and its partner LG Energy Solution began building the plant in Windsor, Ont., a year ago but said Monday it had stopped construction as negotiations with Canada and Ontario hit a snag.

Champagne says Stellantis asked Canada and Ontario to reconsider its financial aid offer to the plant last fall after the United States passed the Inflation Reduction Act.

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That bill included massive production subsidies for clean technology including EV batteries, and led Canada to sign a deal with Volkswagen that promises of up to $13 billion in federally funded production subsidies for a battery plant in southwestern Ontario.

Stellantis wants a similar deal but the federal government says Ontario needs to contribute something to the production side beyond its $500-million commitment toward the capital cost.

Ontario Premier Doug Ford said Monday Canada needs to match its offer to Volkswagen for Stellantis.

This report by The Canadian Press was first published May 16, 2023.