Industry Minister Francois-Philippe Champagne 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 companies announced the plan for the battery facility in March 2022 with a $1-billion capital contribution from the federal and provincial governments.
But the companies went back for more government support after the United States announced new production tax credits for EV battery makers as part of the Inflation Reduction Act.
That legislation compelled Canada to sign an agreement with Volkswagen to subsidize batteries made at a planned new plant in St. Thomas, Ont. 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.