Deal Reached: Construction On Stellantis And LG Energy Solution Canadian Gigafactory Resumes

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The plant is under construction on Twin Oaks Drive between Lauzon and Banwell.

Construction on the Windsor battery plant is set to resume after Stellantis N.V. and LG Energy Solution (LGES) signed a binding agreement that secures the future of battery cell and module production in Windsor.

The five-billion-dollar lithium-ion battery plant, a joint venture of Stellantis and LG Energy Solution, was first announced in March 2022. Construction at the future plant was halted on May 15, 2023, after Stellantis claimed the federal government had not met its financial commitment and that the company was implementing contingency plans for battery production.

Financial details were not released, but a news release says the agreement honours the commitments that were made by the Canadian government to level the playing field with the U.S. Inflation Reduction Act (IRA).

“The IRA fundamentally changed the landscape for battery production in North America, making it challenging to produce competitively priced, state-of-the-art batteries in Canada without an equivalent level of support from government,” said Mark Stewart, Stellantis Chief Operating Officer North America. “We are pleased that the Federal government, with the support of the Provincial government, came back and met their commitment of leveling the playing field with the IRA. This collective effort enabled the deal to close, and we are now resuming construction on the site in Windsor. We are very grateful to the governments for their leadership to resolve and bring this deal to fruition, as well as Lana Payne and her team from Unifor for tirelessly advocating alongside us in our shared commitment to protecting thousands of new jobs as we achieve our electrified future propelled by our Dare Forward 2030 strategic plan.”

All construction at the NextStar Energy battery plant in Windsor will resume, with production operations planned to launch in 2024.

The plant aims to have an annual production capacity in excess of 45 gigawatt-hours and will create an estimated 2,500 new jobs in Windsor and the surrounding areas.

“We knew the high stakes. We knew these commitments had to be kept because the alternative would have been unthinkable for many workers. I know what resonated with all parties was the persistent message from our union that thousands upon thousands of workers’ livelihoods were hanging in the balance throughout this dispute,” said Lana Payne, Unifor National President. “We would like to thank Prime Minister Trudeau, Premier Doug Ford and the company for reaching this important conclusion and taking the necessary action to secure the Stellantis production footprint in Canada.”