Stellantis, LG Energy Spar With Trudeau Government Over EV Battery Factory Funding Promises

“As of today, the Canadian government has not delivered on what was agreed to, therefore Stellantis and LG Energy Solution will immediately begin implementing their contingency plans,” said the statement. The company didn’t elaborate.

Trudeau has pledged financial help to make Canadian manufacturing plants competitive with US ones after the passage of the Inflation Reduction Act last summer — and his government offered a huge financial package to Volkswagen AG, worth as much as C$13 billion ($9.6 billion), for a battery plant in southern Ontario about two hours from Detroit.

Stellantis and LG made their Windsor announcement months before President Joe Biden signed that bill, which contains rich incentives for certain types of manufacturing, including electric vehicles.

An official in Canadian Industry Minister François-Philippe Champagne’s office said negotiations are continuing.

“The auto industry is crucial to the Canadian economy and to the hundreds of thousands of Canadian workers in this sector. That’s why Minister Champagne has worked tirelessly to secure the future of Canada’s auto industry,” spokesperson Laurie Bouchard said in an emailed statement. “We continue to negotiate in good faith with our partners. Our top priority is and remains getting the best deal for Canadians.”

Unifor, the labor union representing workers at Stellantis’ assembly plant in Windsor, is also involved in the negotiations, a union spokesman said.