Windsor-Tecumseh MP Irek Kusmierczyk said he has been getting regular updates on discussions on the future of Windsor's new EV battery plant, and he is confident construction will continue.
Kusmierczyk said his government's commitment to the NextStar Energy battery manufacturing plant hasn't changed, but what has is the landscape.
"The Biden Administration in the U.S. has provided additional incentives through the Inflation Reduction Act," he explained. "A subsequent agreement needs to take place to basically respond to those investments on the U.S. side, and that's what we're working through right now."
Kusmierczyk said Prime Minister Justin Trudeau, Industry Minister Francois Phillippe Champagne, and Finance Minister Chrystia Freeland are engaged in talks to reach that agreement. Also around that table are representatives from Unifor, Stellantis, and the provincial government.
Listen to the full interview with Windsor-Tecumseh MP Irek Kusmierczyk below.
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Unifor National President Lana Payne issued a statement earlier accusing the federal government and Stellantis of "playing a high-stakes game that is betting the livelihoods of tens of thousands of Canadian automakers."
Payne pointed out the last federal budget which stated, "Without swift action, the sheer scale of U.S. incentives will undermine Canada's ability to attract the investments needed to establish Canada as a leader in the growing and highly competitive global clean economy. If Canada does not keep pace, we will be left behind."
Windsor-Tecumseh MPP Andrew Dowie directed WindsorNewsToday.ca to Unifor's statement saying, "It reflects the situation well."
Windsor Mayor Drew Dilkens on May 10, 2022 (Photo by Adelle Loiselle)
Windsor Mayor Drew Dilkens also responded to Toronto Star reports that the EV battery plant was in peril.
"The entire deal is now in question due to the federal government not fulfilling their commitments, jeopardizing not only the completion of the EV plant but also our efforts to attract additional investment to the region," he wrote. "As negotiations continue, the City of Windsor expects the federal government to follow through on their commitments, just as the City of Windsor and Province of Ontario have fully honoured theirs."
The Inflation Reduction Act offers investors massive incentives of 30 per cent on base tax credits and a production tax credit of 2.75 cents per kilowatt hour.
"The ITC [Investment Tax Credit] is a tax credit that reduces the federal income tax liability for a percentage of the costs of a qualified system that is installed during the tax year," read an explanation from the U.S. Federal Energy Management Program. "The PTC [Production Tax Credit] is a per kilowatt hour tax credit for electricity generated for the first ten years of a qualifying system's operation. It reduces the owner's federal income tax liability and is adjusted annually for inflation."
"This is a generational investment, and we know that this is the future of the industry -- I can tell you that our government is absolutely committed to those investments, both in Windsor and St. Thomas," said Kusmierczyk.
Asked if the federal government would sweeten the pot for Stellantis, Kusmierczyk would not say, pointing out discussions continue.
Windsor-West MP Brian Masse suggested Canada finds itself behind the eight ball because it doesn't have an auto policy governing these investments.
"President Biden's policies demonstrate that the landscape is always changing, so you need to be quick and nimble and responsive to that changing landscape, and you also have to be fully committed," responded Kusmierczyk.