(Finance) – The Canadian government and that of the Ontario region have pledged to deliver major grants for creating a battery plant for electric vehicles of Stellantis and LG Energy Solution (LGES) and one of Volkswagencalling them “unrepeatable projects” which will “anchor” the auto manufacturing sector in the country and keep good jobs in Canada.
“We’ve already fought and secured the new NAFTA, which protects our auto industry, and we’ve fought and secured a cut for Canada in its electric vehicle incentives.”IRA (Inflation Reduction Act) Stellantis and LGES, in May, had terminated the project asking Canada to match the support of the United States under the IRA.
As part of the agreement with Stellantis and LGES, Canada and Ontario will provide performance incentives up to 15 billion Canadian dollars (CAD).
“The agreement between our governments also extends to plans by Volkswagen Group and its subsidiary PowerCo to establish the first overseas Volkswagen electric vehicle battery cell manufacturing facility in St. Thomas, Ontario,” it said. Volkswagen could receive up to 13 billion Canadian dollars into incentives”.
Canada’s automotive industry matters over 500,000 workers, including nearly 100,000 workers in automobile plants in Ontario. The sector contributes $16 billion annually to Canada’s GDP and is one of the country’s largest export industries.