20 Jul NextStar Energy, Canada reach deal to resume plant construction in Ontario
The Canadian government has pledged to provide a subsidy equivalent to the U.S. Inflation Reduction Act (IRA) to a joint venture between South Korea’s battery maker LG Energy Solution Ltd. and multinational automaker Stellantis N.V. The two companies’ joint venture, NextStar Energy Inc., officially announced Thursday that it has signed an agreement to ensure a stable future for battery cell and module production in Ontario and that the Canadian government has pledged to provide subsidies equivalent to the U.S. IRA. “We are pleased that the federal government with the support of the provincial government came back and met their commitment of leveling the playing field with the IRA,” said Mark Stewart, chief operating officer of Stellantis in North America. As a result, LG Energy Solution and Stellantis will immediately resume building the battery module plant that had been put to a halt on May 15.