The president of the Automotive Parts Manufacturers Association says there is increasing confidence that we're very close to the finish line when it comes to reaching a deal around the NextStar Energy electric vehicle battery plant in Windsor.
Flavio Volpe, the president of the Automotive Parts Manufacturers Association, told reporters during an event in Windsor on Monday that he's confident we'll be making batteries for Stellantis in Windsor.
"I think we're probably a few days away, I know you probably heard me say that last week. But in all the discussions I had with all of the parties, there is increasing confidence that we're very close to the finish line on this and for the full investment," he says.
The federal government, provincial government, Stellantis and LG Energy Solution have been in heavy negotiations for a few weeks after the companies paused construction on their planned $5-billion factory in a dispute over federal subsidies.
When the plant was first announced, it was intended to assemble both cells and modules in two different sections along with a research and development aspect. However, the battery module production component was put in jeopardy as the automaker indicated it was exploring options to locate that part of the work in the U.S. as a result of the stalled negotiations.
Volpe is confident we will see the full investment.
"As you know for me, very important representing automotive suppliers that we get the cells and modules," he says. "Also that we keep whole that full footprint. Cells, modules, research and development plant, and Windsor and Brampton automotive."
The plan for the battery plant was announced in March 2022, but the companies went back for more government support after the United States announced the Inflation Reduction Act which included new production tax credits for E-V battery makers.
The automaker has been seeking incentives similar to what was provided to Volkswagen for its EV battery plant in St. Thomas, which could be worth up to $13 billion over a decade.
On June 1, Ontario committed to paying a third of the cost to save the plant.
During a stop in Kingsville, Premier Doug Ford said the province has stepped up in a "huge, huge way" and wants the federal government to do the same for a deal with Stellantis.
With files from Patty Handysides