Stellantis NV, in collaboration with LG Energy Solution Ltd., is set to receive substantial subsidies for its new electric vehicle (EV) battery plant in Windsor, Ontario, exceeding the $13 billion received by Volkswagen for a similar project, according to expert analysis. While Stellantis and LG Energy Solution announced the Windsor plant last year, construction has been paused as negotiations for additional financial aid from the Canadian government are underway. The companies are seeking incentives equivalent to what they would receive under the Inflation Reduction Act (IRA) if the plant were located in the United States. Johns Hopkins University professor Bentley Allan estimates that the total cost to Canada for the Stellantis plant could reach $19 billion over a decade, surpassing the Volkswagen package. The high costs are attributed to U.S. legislation subsidizing battery cell production, not just capital expenses. Despite the substantial figure, factors such as recent budget measures for investment tax credits may help mitigate costs for Canada.
Read more from the link below:
Comments