OTTAWA, Canada - Automaker giant Stellantis has stopped construction at its EV battery plant site in Canada, Xinhua quoted a CTV News report Monday.
Stellantis was quoted as saying in a statement that "the Canadian government has not delivered on what was agreed to therefore Stellantis and LG Energy Solution will begin implementing their contingency plans".
Effective immediately, all construction related to the battery module production on the Windsor site has stopped, the report said, citing a revised statement issued by the company.
The move came following the Canadian government's offer to another automaker Volkswagen with massive production subsidies for its new electric vehicle battery plant.
Last month, Canada committed to providing Volkswagen with production support to match the United States Inflation Reduction Act (IRA) Advanced Manufacturing Production Credit, equalling US$35 per kWh and the federal investment ranges between 8-13.2 billion Canadian dollars (US$5.8-US$9.6 billion).
Last May, the Canadian government announced federal funding of up to 529 million Canadian dollars (US$423 million) for Stellantis, and the Province of Ontario was also supporting the project with an investment of up to 513 million Canadian dollars (US$410 million).
In an emailed statement to CTV News Monday, a spokesperson for Francois-Philippe Champagne, the Canadian minister of innovation, science and industry, said the government is continuing negotiations. - BERNAMA-XINHUA