(News Bulletin 247) – Canada and Ontario announced on Thursday that they would provide Stellantis and LG with a grant of up to $15 billion to resume their ‘gigafactory’ project in the country.
The federal government is expected to provide two-thirds of this funding, while Ontario will provide the remaining third of the amount.
With this agreement, the construction of the ‘NextStar’ lithium-ion battery production plant will be able to resume immediately, with the objective of starting production in 2024.
Volkswagen – which also plans to establish a factory to manufacture battery cells for electric vehicles in St-Thomas, Ontario – could receive up to $13 billion from Canadian authorities.
Stellantis and LG Energy Solution had announced in 2022 their intention to create a joint venture in Canada to build a large-scale lithium-ion battery production site.
The site, which must have an annual production capacity of more than 45 gigawatt-hours, is supposed to generate around 2,500 new jobs.
By comparison, the Canadian auto sector employs more than 500,000 people, including nearly 100,000 in Ontario factories.
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