Stellantis and LG Energy Solution announced they stopped construction on a $4.1B EV battery plant, BNN Bloomberg reported.
The joint venture said the Canadian federal government had not met its agreed-upon commitments for the site in Windsor, Ontario.
However, the federal government continues negotiations with its partners, according to a Canadian industry minister spokesperson.
The president of the Automotive Parts Manufacturers’ Association of Canada, Flavio Volpe, suspects Stellantis is seeking more funding to compete with the U.S. subsidies on offer.
The Ontario provincial government already agreed to provide $372 million for the Windsor facility.
The federal government previously agreed to subsidies worth up to $9.6 billion in addition to a $521 million grant for an Ontario Volkswagen plant announced in April.
Windsor Mayor Drew Dilkens said the lull jeopardizes the completion of the plant and the city’s efforts to attract additional investment.
The Windsor plant is expected to begin production by 2024 and create 2,500 jobs.