Canada agrees up to C$15 billion in incentives for Stellantis-LGES battery plant

FILE PHOTO: Stellantis logo is seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration

OTTAWA (Reuters) - Canada is willing to dole out up to C$15 billion ($11.3 billion) in production incentives for a Stellantis-LG Energy Solution (LGES) electric vehicle battery plant, trumping a record deal with Volkswagen as Ottawa competes with Washington to woo major clean-tech projects.

The subsidies deal has resulted in construction resuming at the Stellantis-LGES plant after the companies halted the project in May demanding Canada match support available in the United States under the Inflation Reduction Act (IRA).