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Premier Doug Ford says Ontario will spend more money to save Windsor’s planned Stellantis electric vehicle (EV) battery plant.
Ford said Friday morning his government will sweeten the deal for the automaker on the NextStar plant, which would employ 2,500 people.
“I will confirm we’re putting more money on the table. This is all about saving jobs and giving people the quality of life they deserve in southwestern Ontario.
“Down in Windsor, before we came into office, you could shoot a cannon down the street in the middle of downtown and you wouldn’t hit anyone. This is going to be an opportunity for people to get great-paying jobs. It’s going to bring certainty and stability within that region.”
Windsor Mayor Drew Dilkens said it was a step in the right direction toward the province and Ottawa finalizing a deal for the battery plant, a joint venture between Stellantis and LG Energy Solution (LGES), which is headquartered in South Korea.
“The city remains proactive in gathering information to extend assistance to stop the uncertainty,” Dilkens said on Twitter.
Stellantis had begun construction on the plant, which is due to open next year.
But a week ago, the company said it was looking at “contingency plans,” claiming the federal government hasn’t kept its promises in negotiations. Last weekend, Stellantis halted most construction.
Ontario needs to pay ‘fair share’: Freeland
In an interview with CBC Radio’s The House that was recorded prior to Ford’s comments Friday, Finance Minister Chrystia Freeland said there were positive but “very pointed” conversations with Ontario and Stellantis this week.
“This is the money of all Canadians, and so it really behooves us as a government to work really, really hard to get a good deal, and that means ensuring that Stellantis is reasonable. It means ensuring that Ontario pays its fair share, and Ontario does have the fiscal capacity to do that.”
François-Philippe Champagne, federal minister of innovation, science and industry, was in South Korea this week as part of a Canadian contingent to meet with business and industry leaders. He said Friday he had dinner with the president of LG Energy Solution and it lasted over two hours.
“I think we have a common understanding of the way forward.”
Analysts say one of the culprits that may be impacting plans for the Stellantis EV battery plant is the U.S. Inflation Reduction Act, which provides incentives for automakers to set up companies south of the border.
WATCH | About That’s Lauren Bird explains how a U.S. act may be impacting Stellantis EV battery plant in Windsor:
When automaker Stellantis announced a halt in construction on an EV battery plant in Ontario, it revealed a dispute with the federal government. Ottawa promised big tax incentives for the plant, but a few months after the deal was signed, an American law came into effect that changed everything. About That’s Lauren Bird explains how unprecedented investments south of the border led to the Stellantis stoppage.
Also at issue is a new Volkswagen plant near St. Thomas, Ont., which is receiving as much as $13 billion in incentives. The federal government committed about $500 million to the Windsor plant.
Ford said he won’t reveal details yet about how much the province is spending, but added there will be an announcement soon.
Ontario NDP Leader Marit Stiles, who was in Windsor on Friday, said it was a positive step to see Ford “come to the table for the people of Windsor-Essex.”
“The Stellantis plant is of huge importance to the Windsor-Essex community, and it will be a massive relief to workers when they can be confident that these good paying union jobs are coming to the region,” she said in a statement.
“Now let’s make sure this deal is done.”
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