View shows the site where the gigafactory for electric vehicle battery production by Volkswagen Group's battery company PowerCo SE will be built in St. Thomas, Ontario, Canada April 21, 2023.
REUTERS/Carlos Osorio/File Photo Acquire Licensing RightsSept 12 (Reuters) - The Canadian government will take 20 years to recoup the combined C$28.2 billion ($21 billion) subsidies it is offering Volkswagen and Stellantis-LG Electric Solutions (STLAM.MI), to build two electric vehicle (EV) battery plants, the country's budgetary watchdog said on Tuesday.
Parliamentary Budget Officer Yves Giroux projected that the combined revenue generated from the two plants would only match the production subsidies by 2043, if production starts in 2024.
In May, Stellantis stopped constructing its EV battery plant in Windsor, Ontario, saying the Canadian government did not deliver on the committed subsidies.
The dispute was resolved after two months of bargaining when the government agreed to provide subsidies similar to the one it gave Volkswagen.
Persons:
Carlos Osorio, Yves Giroux, Justin Trudeau, Stellantis, Francois, Philippe Champagne, Urvi, Divya Rajagopal, Josie Kao
Organizations:
Volkswagen Group's, REUTERS, Canadian, Volkswagen, LG Electric Solutions, EV, LG Energy, Thomson
Locations:
St, Thomas , Ontario, Canada, Windsor , Ontario, Ontario, Bengaluru, Toronto