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Canada's sweeteners out: C$15 bn for Stellantis-LG Energy battery plant

Mark Stewart, Chief Operating Officer for Stellantis for North America (left), with Dong-Myung Kim, President of LG Energy's Advanced Automotive Battery Division. Image: LGES

A day after Stellantis-LG Energy Solution announced they would resume construction of their battery plant in Canada, the increased incentives awarded for the project became known.

In a statement, the governments of Canada and Ontario province said they would provide C$15 billion in production incentives to the combine. In a joint statement, the governments noted: "Today's announcement will protect and create thousands of good-paying jobs for workers, including unionized jobs, as we establish an end-to-end electric vehicle supply chain to strengthen the clean economy."

Stellantis and LG Energy had announced the plant in Windsor, Ontario. The plant was set to begin battery production in 2024 targeting an annual production capacity of around 45 gigawatt hours. However, the companies halted construction in May and asked Canada to match the support being received in the US under the country's new Inflation Reduction Act. 

"We are pleased that the [Canadian] Federal government with the support of the Provincial [Ontario] government came back and met their commitment of leveling the playing field with the [US] IRA," Mark Stewart, Chief Operating Officer at Stellantis for North America, said in a statement after the deal was announced. 

The US and Canada are competing to become the home base for large cleantech projects, and Canada is trying to woo companies in the EV supply chain as it seeks to become a global battery hub. The government has said that large battery projects like the Stellantis-LG Energy combine and Volkswagen's multiple battery plants would be used as "anchors" for the country's pivot into the cleantech sector.

The country is already home to a large mining sector including critical emerging technology minerals such as lithium, nickel and cobalt. 

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