Leading global automaker Stellantis is pausing construction on its planned EV battery plant in Windsor, Canada, over a funding dispute with the federal government.
Stellantis, the parent company behind some of the most prominent auto brands, including Jeep, Ram, Alfa Romeo, Maserati, Dodge, Chrysler, Fiat, and more, has halted construction on the EV battery plant in Canada.
Last March, Stellantis and LG Energy Solution revealed plans to build the automaker’s first large-scale electric vehicle battery plant in Canada. The joint venture planned to invest over CAD 5 billion ($4.1 billion) for a 45 GWh battery manufacturing facility in Windsor.
Although Stellantis didn’t say specifically what EVs the batteries would power, the automaker has several new launches in North America. Ram’s first electric pickup, the RAM 1500 REV, is due out next year as a 2025 model year, and Jeep’s first pure EV, the Recon, is due out in 2024.
The planned facility was slated to create an estimated 2,500 jobs in the area and would be “fully supported” by Canada’s municipal, provincial, and federal governments.
Initial plans called for the EV battery plant to go online in the first quarter of 2024. However, according to new reports, that timeline may need to be pushed back.
Stellantis pauses EV battery plant construction in Canada
According to a new report from BNN Bloomberg, Stellantis and LG have halted construction on the planned facility due to the lack of federal support.
A spokesperson from Stellantis claimed the companies are looking at backup plans because “the Canadian Government has not delivered on what was agreed.”
LouAnn Gosselin, head of communications at Stellantis, said in an email:
Effective immediately, all construction related to the battery module production on the Windsor site has stopped.
Windsor Mayor Drew Dilkens expressed his concerns in a statement on Saturday, saying the deal is in question due to the federal government neglecting its commitments and “jeopardizing not only the completion of the EV plant but also our efforts to attract additional investment to the region.”
Dilkens did add he “expects the federal government to follow through on their commitments, just as the City of Windsor and Providence of Ontario have fully honored theirs.”
Canada made a deal with another top global automaker last month in agreeing to provide Volkswagen up to CAD 13 billion ($9.7 billion) to establish what could become the largest auto manufacturing site in the country.
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