Battery plant construction has been stopped in a dispute over government funding. Gabriel Friedman explains what is at stake
that contains incentives to encourage an electric vehicle supply chain that some private estimates say could reach hundreds of billions of dollars by 2030.Article content
“You can put me in the skeptical camp,” said Greig Mordue, chair in advanced manufacturing policy at McMaster University, and formerly the general manager of Toyota Motor Manufacturing Canada, where he worked on strategy and external affairs. Mordue said a key difference is that many automakers are headquartered in the U.S. and companies tend to conduct critical research in proximity to their headquarters. As a result, the U.S. is likely to receive more benefits from shoring up its auto sector than would Canada, which he said is unlikely to receive the same add-on benefits.and predicted that Stellantis would demand a similar level of support.
It is also unclear if Stellantis/LG can resolve their differences with the federal government and reach a mutually agreed upon level of support. Mordue said the fact that the plant is already under construction does not mean that Stellantis is too far down the road to back out.Article contentThe real costs comes when machinery and equipment starts to be installed,” he said. “Windsor’s LG-Stellantis plant had not yet reached that stage.
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