July 5 (Reuters) - Stellantis-LG Energy Solution (LGES) (STLAM.MI) will resume construction of an electric-vehicle battery plant in Canada after the federal government and province of Ontario increased subsidies for the C$5 billion ($3.7 billion) project.
The companies said on Wednesday battery production at the plant in the city of Windsor in Ontario was now set to begin in 2024, creating some 2,500 new jobs and targeting annual production capacity over 45 gigawatt hours.
Stellantis and LGES first announced their battery plant investment in March last year, but tensions emerged a few months later in August when the U.S. passed the IRA, which includes a massive package of clean-tech incentives for companies.
In April, Canada agreed to provide up to C$13 billion in manufacturing tax credits and a C$700 million grant to lure German automaker Volkswagen AG to build its North American battery plant in the country.
It was the biggest single investment ever in Canada's EV supply chain.
Persons:
Stellantis, LGES, North America Mark Stewart, Francois, Philippe Champagne, Chrystia Freeland, Steve Scherer, Ismail Shakil, Costas Pitas, Caitlin Webber, Eric Beech, Sonali Paul
Organizations:
LG Energy, Canada, IRA, Federal, Provincial, North America, Industry, Volkswagen AG, Thomson
Locations:
Canada, Ontario, Windsor, Detroit, United States, U.S, Ottawa