jetcityimage/iStock Editorial via Getty Images
The Canadian government said Thursday that it has agreed to The disbursement of an amount of up to 15 billion Canadian dollars (about US$11.3 billion) in incentives for Stellantis (New York Stock Exchange: STLA) for an electric vehicle battery manufacturer, tops C$13 billion in government aid for more than a decade previously offered to Volkswagen (OTCPK: VWAGY) for a similar plant.
The deal ended a standoff that began in May when the automaker halted construction on the project, demanding Canada match support available in the United States under the Inflation Reduction Act.
The Stellantis (STLA) plant, built in partnership with South Korea’s LG Energy, is located in Ontario, whose provincial government earlier agreed to charge a third of the cost, which will also extend to the Volkswagen (OTCPK: VWAGY) project.
Production at the Stellantis Plant (STLA) is expected to begin in 2024, creating about 2,500 new jobs and targeting an annual production capacity of more than 45 GWh.
Transaction Performance Incentives are contingent upon and proportionate to the production and sale of batteries from each Project, and may be eliminated or reduced if the incentives under USA law are reduced or eliminated.
Separately, Stellantis (STLA) said it has signed a deal with NioCorp Developments (Nasdaq: Note) to supply the rare earth elements used to produce high-energy magnets for its electric vehicles; Financial and production details were not disclosed.
More on Stellantis: