Canada and Stellantis Reach Deal for $15 Billion EV Plant

The Canadian government has agreed to provide Stellantis with up to $15 billion in performance incentives to build an electric vehicle (EV) battery plant in Ontario, and a large Volkswagen EV battery cell manufacturing plant in St Thomas.

This agreement is part of Canada's strategy to attract investment in its electric vehicle sector and boost its clean-energy supply chain. Electric vehicles are becoming increasingly popular, and Canada is not the only country making efforts to attract investment in this sector.

The US Inflation Reduction Act (IRA) has provided billions in subsidies for green industries. The performance incentives announced by Canada are contingent on, and proportionate to, the production and sale of batteries from each project. Stellantis has said construction of the Windsor plant can resume “as of now”, and battery production is scheduled to begin in 2024.

This represents the largest-ever investment in the country’s auto sector, with the potential to protect and create thousands of jobs. The deal also marks a significant step forward in Canada’s journey to a low-carbon economy.

It is hoped the agreement with Stellantis will provide a strong foundation for future investments in green technologies and create a more sustainable future, both for Canada and the world.