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[Alpha Biz=(Chicago) Reporter Kim Jisun] Next Star Energy, a joint venture between LG Energy Solutions and Stellantis, an automaker, has agreed on subsidy conditions with the Canadian government.
The Canadian government has committed to subsidizing NextStar Energy equal to the level guaranteed by the US Inflation Reduction Act (IRA).
According to the industry, it is known that the subsidy to be received by LG Energy Solutions and Stellantis will reach a total of 15 trillion won. The local media, the Windsor Star, reported that the subsidy amounted to 15 billion Canadian dollars (approximately 14.7 trillion won). On the 6th, Next Star Energy said, “We have finally signed a contract that guarantees a stable future for battery cell and module production in the province of Ontario, Canada.”
LG Energy Solutions and Stellantis decided to resume the construction of the battery module plant, which had been suspended since May 15th. The joint venture was originally building a battery module factory in Windsor, Ontario, Canada.
The plant's annual production capacity was 45 gigawatt hours (GWh) and was scheduled to begin operation in 2024. The establishment was suspended as no government subsidy agreement was reached, but resumed as the final agreement was reached. The two companies expect the establishment of the plant to create about 2,500 new jobs there.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
