The federal and provincial governments have committed up to $15-billion to Stellantis-LG Energy to secure the NextStar Energy battery plant in Windsor.
The company announced late Wednesday afternoon that a deal had been reached and construction on the facility would resume.
The money is linked to performance incentives like production and the sale of batteries in each project.
As part of the auto-pact signed by both governments, the federal government will provide two-thirds of the funding while the provincial government will provide one-third.
The funding is a direct response to the incentives offered by the U.S. government through the Inflation Reduction Act. If the incentives are removed or cancelled, the incentives from the Canadian government would also be reduced or cancelled.
“Over the past two and half years, our two governments have worked together to attract and secure multiple electric vehicle and battery projects. Today’s announcement will protect and create thousands of good-paying jobs for workers, including unionized jobs, as we establish an end-to-end electric vehicle supply chain to strengthen the clean economy," read a joint statement from Deputy Prime Minister Chrystia Freeland, Minter of Innovation, Science and Industry François-Philippe Champagne, Premier Doug Ford and Minister of Economic Development Job Creation and Trade Vic Fedeli.
The NextStar Energy battery production plant is expected to start operation in 2024. It will employ up to 2,500 people directly.
