Stellantis halts construction of Canadian battery plant

Stellantis suspends construction of its battery plant in Canada due to a dispute with the government over subsidies. The C$5 billion investment project, in partnership with LG Energy Solution, is halted in Windsor, Ontario.

Partagez:

Carmaker Stellantis announced Monday it is halting construction of its electric vehicle battery plant in Canada due to a disagreement with the government over subsidies. The group had announced in March 2022, with the battery manufacturer LG Energy Solution, to invest 5 billion Canadian dollars (3.6 billion euros) to build a large-scale plant in the Windsor area in the province of Ontario.

Negotiations in progress

“To date, the Canadian government has not respected the commitments made. As of now, all construction work related to the production of battery modules at the Windsor site has been halted,” the group wrote in an email to AFP. The decision comes a month after Canada agreed to provide up to C$13 billion in subsidies to the German car company Volkswagen AG for the construction of a huge plant.

The office of the Minister of Industry, François-Philippe Champagne, told AFP on Monday that negotiations were underway with the group. “Our main concern is and remains to get the best deal for Canadians,” Laurie Bouchard, a spokeswoman for the minister, told AFP.

The plant aims to have an annual production capacity of more than 45 gigawatt hours (Gwh) and should create 2,500 new jobs. The Canadian region of Windsor – located on the border with Michigan and the city of Detroit – is the hub of the Canadian automotive sector. In recent years, Canada has been working hard to attract players in the electric vehicle sector, touting its tax incentives, clean energy and abundant rare minerals.

A partnership between Indonesia Battery and Contemporary Amperex Technology aims to launch a lithium-ion battery plant in Indonesia by the end of 2026, with a 6.9 gigawatt-hour capacity and planned expansion.
State Grid Wuzhong Power Supply Company announces the completion of the energy storage compartment at Tongli substation, a key step for the upcoming integration of a 300 MW shared storage power plant in Ningxia.
Globeleq and African Rainbow Energy finalise commercial agreements for a 153 MW energy storage project in South Africa, aimed at enhancing national grid stability and optimising peak energy management.
Estimated at 40.9 billion dollars in 2024, the global microgrid market is expected to grow at an average annual rate of 19.28% to reach 191.01 billion dollars by 2033, driven notably by innovative energy contracts.
The U.S. energy storage market set a historic record in early 2025, surpassing 2 GW installed in the first quarter despite increasing uncertainty regarding federal fiscal policies and tax credits.
The Sino-Moroccan joint venture COBCO has begun manufacturing essential lithium-ion battery components at its Jorf Lasfar plant, targeting a final annual capacity of 70 GWh, enough to equip one million electric vehicles.
Trianel teams with BKW and Luxcara to build a 900 MW lithium-iron-phosphate storage park in Waltrop, the first phase of a complex that could reach 1.5 GW and stabilise the German grid.
Blue Whale Energy partners with UNIGRID to deploy behind-the-meter storage systems adapted to constrained commercial and industrial urban areas in Southeast Asia.
Northvolt, recently placed under judicial administration, has received an indicative offer from a foreign investor to acquire its Swedish assets, signaling a potential imminent restart of its battery production units.
The frame agreement aligns Jinko ESS’s utility-scale storage technology with Metlen’s development pipeline, unlocking more than 3GWh across Chile and Europe while reducing delivery risk for grid operators.
Buffalo-based Viridi has obtained the cETLus mark for its RPS150 system, meeting the UL 9540 standard only days after a public battery fire-containment demonstration.
Tesla is building a giant electricity storage facility in Shanghai, China, signing a $560 million contract to meet growing demands on the urban electricity grid.
Envision Energy signs a turnkey contract with Kallista Energy for a 120 MW / 240 MWh energy storage project in Saleux, Hauts-de-France, marking its entry into France’s stationary battery market.
The Dubai-based company obtains a USD72mn loan to add a 300MWh battery system to its 500MW solar plant in Kom Ombo, with commissioning expected in July 2025.
Asian developer Gurīn Energy selected Saft to supply a battery storage system exceeding 1 GWh in Fukushima, marking a new stage in Japan’s energy storage deployment.
Chinese lithium-ion battery manufacturer CBAK Energy confirmed a $11.6mn order for LFP cylindrical batteries to power the electric motorcycle fleet of a rapidly growing African group.
China’s 600MW/2400MWh project enters energisation phase following the installation of 240 battery containers, initiating initial maintenance of this ultra-high-voltage hybrid energy facility.
Wanhua Chemical has signed a strategic agreement with Serbian manufacturer ElevenEs to establish a localised supply chain for LFP battery materials, reinforcing their technical and industrial cooperation in the European market.
The partnership targets the development, construction and operation of over 500 MW of battery energy storage systems in France, with 200 MW nearing the construction phase.
Envision Energy and SUN Terra join forces to build a full energy storage value chain in Southeast Asia, India and Australia, including local manufacturing and technology licensing.