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After negotiations, construction will continue on an electric vehicle battery plant in Windsor

An electric vehicle gets its battery recharged at a charge station in San Francisco on March 9.
Justin Sullivan
/
Getty Images
After weeks of uncertainty, a deal has finally been reached for automaker Stellantis to build a battery plant in Windsor.

Construction for the electric vehicle battery plant in Windsor began last year but came to an abrupt halt in May over concerns about funding. Negotiations continued over money to match what the U.S. would offer through its Inflation Reduction Act. It includes subsidies for clean technology, which includes EV batteries

Stellantis and its partner LG Energy Solutions say construction on their $5 billion dollar plant in Windsor would now resume immediately. That came after a deal to match the money they would have received in the U.S.

Ontario’s economic development minister said this week’s deal reflects those benefits. That includes $5 billion dollars in tax breaks from Ontario and $10 billion from Ottawa.

For Windsor Mayor Drew Dilkins, the decision comes as a relief.

“Let's look forward to the future, and that’s the finalizing of construction, getting that plant open, getting it fitted inside, getting 3,000 people hired," said Dilkins.

That also means thousands more jobs in spinoff businesses and a boost to Windsor’s economy.

Some analysts said the Stellantis put the brakes on construction after hearing that governments would provide up to $13 billion dollars for Volkswagen’s first overseas gigafactory in St. Thomas, Ontario.

Some critics such as the Canadian Taxpayers Federation said it’s too expensive and shows that governments are willing to help multinational corporations over taxpayers.