A deal has been reached to save the NextStar EV Battery Plant in Windsor.
The Toronto Star is reporting that Prime Minister Justin Trudeau and Premier Doug Ford have reached a tentative deal with Stellantis to save the Windsor battery factory that could be worth more than $13 billion in subsidies.
Sources in Ottawa and at Queen’s Park, speaking confidentially in order to discuss the negotiations, told the Star that Ford assured his federal counterparts Tuesday night that the provincial government would step up to ensure Stellantis doesn’t relocate the EV facilities to the U.S.
The news comes two days after a united front of Windsor-Essex municipal politicians, union and business leaders came together at Windsor City Hall to urge the federal government to finalize the deal.
In early May, Stellantis and LG Energy Solution warned they were implementing contingency plans because the federal government hasn't lived up to their agreement, pointing to incentives provided to the Volkswagen plant in St. Thomas.
Industry Minister Francois-Philippe Champagne, meantime, says a deal that would save the $5-billion electric-vehicle battery plant in Windsor is inching closer.
The federal government, Ontario, Stellantis and LG Energy Solution have been in heavy negotiations for a few weeks after the companies paused construction on their planned factory in a dispute over federal subsidies.
The Inflation Reduction Act legislation compelled Canada to sign an agreement with Volkswagen to subsidize batteries made at a planned new plant in St. Thomas that could be worth up to $13 billion over a decade.
Champagne says he made a similar offer to Stellantis, but negotiations continue about how the formula would apply to the Stellantis plant, which is half the size of Volkswagen's but will start producing batteries earlier.
Windsor-Tecumseh MP Irek Kusmierczyk has consistently told AM800 news that he believed a deal would get done eventually.
When the $5-billion plant was announced in 2022, the site was intended to assemble both cells and modules in two different sections along with a research and development aspect.
The facility is estimated to bring in 2,500 direct new jobs.
When asked for comment, Head of Communications LouAnn Gosselin told AM800 that Stellantis is not commenting at this time.
More to come.