Automaker Stellantis is shedding its $3.75 billion electric car battery project in Canada amid a dispute over government subsidies. A spokesman announced today that all construction work in connection with the production of battery modules at the Windsor site has been stopped. Reason are differences of opinion with the government about subsidies.
Stellantis includes Opel, Alfa Romeo, Chrysler, Citroen and Fiat, among others. A few days ago, Stellantis and the South Korean battery cell manufacturer LG criticized that Canada had not kept its promises. The companies announced in 2022 that they would build a plant in the country to manufacture batteries for electric cars. Federal and provincial governments should contribute grants.
The Toronto Star newspaper recently reported that Stellantis threatened to end the project if the contract with the government was not raised to the same level as that with Volkswagen.
