Ontario pays 1/3 of the incentives for both Stellantis and VW Battery Plants

Ontario has made an auto pact with the federal government to pay not only a third of production premiums in a deal with Stellantis and LG Energy Solution, but also for a Volkswagen battery factory.

Stellantis and LG stopped building a $5 billion electric vehicle battery facility in Windsor, Ont, in May.

They announced on Wednesday that they had reached a deal with Canada and Ontarioand those two governments say the agreement will see the companies receive performance incentives of up to $15 billion over a period of about 10 years.

Ontario Premier Doug Ford announced in June that the county would agree to a third of the manufacturing stimulus, in addition to a $500 million capital commitment.

Today, the governments say the cost-sharing agreement now extends to production incentives for a Volkswagen electric vehicle battery plant in St. Thomas, Ont.

Volkswagen could receive up to $13 billion in incentives under the deal.