Stellantis negotiations moving in positive direction, government sources say

There's been progress on an agreementto allowthe Stellantis-LG Energy Solution electric vehicle battery plant in Windsor, Ont., to go ahead, sources tell CBC News.

On Wednesday, multiple senior government sources with knowledge of the negotiations said that while there is no agreementyet, there's been a lot of progress in the last 24 hours.

Details still need to be finalized, thoughthe negotiations are moving in a positive direction, the sources say.

The update comes afterthe Toronto Starreportedthat a tentative deal had been reached between the automaker and the federal and provincial governments, citingconfidential sources. CBC News has been unable to independently verify that reporting.

Windsor Mayor Drew Dilkens called the report "premature."

"What I'm hearing is that there is no deal yet, that negotiations are ongoing," he said, noting that he's hopefulthat things are moving in the right direction.

A spokesperson for Stellantis which makes Chrysler, Ram and Fiat vehicles among others declined comment.

Liberal Windsor-Tecumseh MP Irek Kusmierczyk says that he spoke withIndustry MinisterFranois-Philippe Champagne Wednesdayafternoon and the federal government remains "fully engaged" in talks.

"We continue to fight to secure the battery plant and the thousands of jobs for our workers and our community. It is important all partners stretch to get this across the finish line."

Friday will mark three weeks since Stellantis said that Ottawa isn't honouring an agreement related to the project and it would move to "contingency plans."Stellantishas haltedmost of the construction atthe facility.

The automaker and South Korean battery-maker LG Energy Solution announced the $5-billion project last year and said it was expected to create 2,500 jobs. At the time it was announced, the facility was expected to open in 2024.

Experts say Canada's deal with anotherautomaker, Volkswagen, which plans to open a massive factory in St. Thomas, Ont., is connected to the impasse.

That deal, which was struck after new,lucrative incentiveswere announced in the U.S., includes subsidies worth up to $13 billion plus a $700-million grant.

Windsor West NDP MP Brian Masse called on Ottawa Wednesday to match the deal offered to Volkswagen.