Stellantis stops construction on Windsor, Ont., EV battery plant amid Ottawa dispute

Stellantis says it has stopped construction on an electric vehicle (EV) battery plant in Windsor, Ont., because the federal government has not delivered on what was promised.

The automaker — which makes Chrysler, Ram and Fiat cars among others — and South Korean battery-maker LG Energy Solution announced the $5-billion plant last year and said it was expected to create 2,500 jobs.

All levels of government were to provide financial support in the pending deal, but Stellantis now says the federal government "has not delivered on what was agreed to."

Ottawa says negotiations are ongoing.

Ontario Premier Doug Ford said he's concerned, and the federal government needs to support Stellantis in the same way it did Volkswagen.

Canada's deal with Volkswagen includes subsidies worth up to $13 billion plus a $700-million grant.

WATCH | Ontario Premier Ford speaks on halt of Stellantis EV plant work, saying Ottawa needs to keep its promise to Windsor:

"It really worries me," Ford said Monday morning.

He said the federal government has been "great partners" on the Stellantis project and now, it needs to follow through. 

"They need to continue supporting the people of Windsor, which they promised they were going to do. We want to work hand in hand with the feds on future deals as well."

The Canadian Taxpayers Federation said Monday that Ottawa should reject Stellantis's "corporate welfare demands."

"If you hand out billions of dollars in taxpayer cash to one auto company, of course the others will follow," said Jay Goldberg, the federation's Ontario director. "Taxpayers can't afford to throw money at every company under the sun and Ottawa needs to say no before it wastes billions more."

Stellantis and NextStar Energy Inc. announced the plant last year and construction has been ongoing for months. The plant is due to open next year. Ottawa's contribution was to be about $500 million. 

But the Inflation Reduction Act, introduced by the U.S. government a few short months after the Windsor plant was announced, promises billions over the next 19 years to incentivize companies to build EV plants on their soil. That competitive edge played a role for the higher investment in Ottawa's Volkswagen deal.