The federal government is in "advanced stages" of negotiations to finalize a new funding agreement for the NextStar electric vehicle battery plant in Windsor.
That's according to Windsor-Tecumseh Liberal MP Irek Kusmierczyk, who says he has been in conversation daily with Minister of Innovation, Science and Industry François-Philippe Champagne, who is the point person in negotiations with Stellantis and LG Energy Solution.
Stellantis and LG Energy Solution announced last year that they were building the $5-billion plant, but have in recent weeks halted portions of the construction and warned they were implementing contingency plans because the federal government hasn't lived up to an agreement.
The CEOs of the two companies wrote last month to Prime Minister Justin Trudeau, saying Ottawa had confirmed in writing five times that it would match production incentives under the United States' Inflation Reduction Act, but has not delivered on those commitments.
The federal government had been pressuring Ontario to pitch in as well, saying the province also has to pay its "fair share."
Ontario Premier Doug Ford announced on May 19 that the province is offering more money in a bid to keep Stellantis from pulling out of building the EV battery plant in Windsor, but the federal government still needs to finalize the deal with the automaker.
Kusmierczyk says they want to have the agreement as quickly as possible but the scale of investment is unprecedented, so it takes time.
"It's about all levels of government working together. I was pleased to see the Ontario government finally came to the table, that was an important move and that's what gives me confidence that we're going to get this agreement done in short fashion," he says.
Kusmierczyk says there is still some construction at the battery plant site as the talks continue.
"Negotiations are in an advanced stage right now, we're getting close to that agreement. Again, I am fully confident we will get an agreement and we will have a battery plant in Windsor, I've said that since Day 1," he adds.
The joint venture between Stellantis and LG Energy Solution to build Canada's first large-scale lithium-ion battery production plant on over 200-acres of land off Banwell Road will create an estimated 2,500 direct new jobs.
Operations at the plant are planned to launch in the first quarter of 2024.
With files from Rob Hindi