$4.9B electric vehicle battery plant announced for Windsor, Ont. - Action News
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$4.9B electric vehicle battery plant announced for Windsor, Ont.

Canada's first lithium-ion electric vehicle battery manufacturing plant is coming to Windsor, Ont., as part of a $4.9-billion joint-venture deal between Stellantis and LG Energy Solution, government officials confirmed Wednesday.

Joint-venture EV manufacturing plant expected to be operational by 2024, create 2,500 jobs

Premier Doug Ford along with federal and municipal officials confirmed on Wednesday that Windsor, Ont., will be home to an important electric vehicle battery manufacturing plant. (Mike Evans/CBC)

Canada's first lithium-ion electric vehicle (EV) battery manufacturing plant iscoming to Windsor, Ont., as part of a $4.9-billion joint-venture deal between Stellantis and LG Energy Solution, federal and provincial officials announced Wednesday.

The operation is set to create 2,500 jobs in the region, with each level of government offering incentives for the project.

Ontario Premier Doug Ford, Economic Development Minister Vic Fedeli, federal Minister of InnovationFranois-Philippe Champagne, federal Transport Minister Omar Alghabra and Windsor Mayor Drew Dilkens were among those atthe facility'sfuture site in the southwestern Ontario city for the announcement Wednesday.

"This is the largest automotive investment in the history of our province and the country as well," said Ford.

"This game-changing battery plant will help guarantee that Ontario is at the forefront of the electric vehicle revolutionand ensurewe remain a global leader in the auto manufacturing just as we have been for over 100 years."

The companies say they've "executedbinding, definitive agreements" to establish the factory, set to have an annual production capacity of 45 gigawatt hours.

Stellantischief operating officerMark Stewart said the facility will supply a "substantial amount" of EV batteries.

"This battery plant is going to supply across North Americafor us as one of two that we have envisioned," said Stewart, adding the factory's proximity to the U.S. makes Windsor an ideal location for business.

Government officials as well as senior representatives from Stellantis and LG Energy Solution spoke at the announcement about the EV battery plant on Wednesday, touting benefits for the local community and Canadian auto sector as a whole. (Dale Molnar/CBC)

Stellantis plans to announce their second EV battery manufacturing plant, which will be in the U.S., in the coming weeks.

Stewart said Windsor'snew facility will be the size of about112 NHL hockey rinks, with Champagne calling it Canada's firstgigafactory.

Governments, Windsor provide incentives

While each level of government has partnered in the deal to create massive incentives to the companies,it's unclear how much funding the federal and provincial governments have kicked in.

When CBC News asked for details about the amount of taxpayer money that will be spent,Ford said: "I can't divulge that.It would compromise some negotiations moving forward with other companies as well, but it's a massive investment and its hundreds of millions of dollars."

WATCH | Ford says he 'can't divulge' how much Ontario, Ottawa have spent on the deal:

Ontario premier won't say how much taxpayer money dedicated to new EV battery plant in Windsor, Ont.

2 years ago
Duration 1:55
When asked how much federal and provincial funding is going toward a new $4.9-billion electric vehicle battery plant in Windsor, Ont., Premier Doug Ford said he could not say for now.

For its part, the City of Windsor kicked in a land assembly deal for the massive factory, money toward infrastructure development if neededand a long-term tax grant, according to an official with the city.

The city is buying land for the site located at 9865 Twin Oaks Dr.at a cost of between $45 million and $50 million. The citywill then lease the land to the joint venture betweenStellantis and LG Energy Solution.

The official said the city hasnegotiated conditional offers with each of these corporate owners, in case either backsout.

Windsor is in the process of securing two sections of land needed for the site one owned by Enwin and another owned by a private resident.

A line of people in front of an empty field that is the future site of Windsor's EV battery plant
Government officials and business executives stand in front of the site of the planned EV battery plant in Windsor that's expected to be operational in 2024. An official said the new facility will be the size of about112 NHL hockey rinks. (Mike Evans/CBC)

"This was a whole-of-government approach, and so this is a highly competitive space not just city versus city, within the province, across the country, throughout North America," said Dilkens.

The mayor said the city would do everything in its power to make a smooth transition tothe new plant, which is set to break ground later this year.

Our local roots are in manufacturing and automotive, and we're darn good at it.- Drew Dilkens, mayor of Windsor, Ont.

"Our local roots are in manufacturing and automotive, and we're darn good at it," said Dilkens.

"We've lived through the ups and downs of the global economy and we have lived through the ups and downs of he automotive industry. The men and women who work here never give up hope that there's better days ahead."

Wednesday's announcement is the latest injection to Ontario's carsector, part of Ford's ongoing"driving prosperity" auto manufacturing strategy.

Nearly a week ago,Ford announcedhis government's "critical minerals" strategy, aimed at capitalizing on the global demand for minerals crucial to items like EV batteries, and ensuring Ontario become a consistentsupplier of those goods.

Heading into the official announcement, the prospect of an electric vehicle battery plant being builtin Windsorsparkedoptimism about what it could mean for the region and the auto industry.

"This will put us on the map, not just here in North America, but globally," said Rakesh Naidu, president and chief executive officerof the Windsor-Essex Regional Chamber of Commerce. "There'll be a recognition ofwhat Windsor-Essex can do in terms of not just how good we are in the conventional auto sector, but also in terms of the the new generation of auto technologies, and the new... EVs sector."

Yvonne Pilon, president and CEOof WEtech Alliance, said the projectwould be great for talent retention andstartup development in the region.

"There is a lot of technology in the electric vehicle, electric batteries, so from a startup perspective, we look at what this will mean for new companies coming to the region, new companies starting based on, again, a diversified and different supply chain," she said.

With files from Kris Ketonen, Dale Molnar