Windsor is getting a giant electric vehicle battery plant. Here's what you need to know
About 2,500 new jobs expected at massive facility set to open in 2024
Canada's first-ever electric vehicle battery gigafactory is set to open in Windsor, and officials could hardly hold back their glee when announcing the local benefits they say the plant will offer.
Windsor Mayor Drew Dilkens was joined Wednesday by politicians from all levels of government and business executives — some coming as far as South Korea — announcing the lithium-ion electric vehicle (EV) battery manufacturing plant coming to the city.
The plant is a joint venture between Stellantis and LG Energy Solution, and is being supported by the city, province and federal government through incentives and funding.
"For generations, Windsor residents have worked in the automotive industry that first began along the banks of the Detroit River more than 100 years ago. They made their livings, they raised their families, and they invested in this community," Dilkens said, opening the announcement.
"They laid the foundation of our growth and our success. And now we are more sure today that future generations will be able to realize their dreams here as well."
So, what can Windsorites expect?
2,500 new jobs in next few years
The plant will provide 2,500 new jobs in the region, making it one of the area's top employers.
City and government officials spoke at length about what the injection of new jobs will mean for Windsor, especially after Stellantis' Windsor Assembly Plant cut its third shift, with plans to cut the second shift as well.
"Today is a good day for Windsor-Essex," said Windsor–Tecumseh Liberal MP Irek Kusmierczyk, at the announcement. "This community has seen some valleys but we never lost faith in each other and ourselves."
"Our local roots are in manufacturing and automotive, and we're darn good at it," said Dilkens.
"We've lived through the ups and downs of the global economy and we have lived through the ups and downs of the automotive industry. The men and women who work here never give up hope that there's better days ahead."
Massive factory set to break ground in 2022
Stellantis chief operating officer Mark Stewart said the companies hope to break ground on the site this year, to be fully operational by 2024.
The massive factory — being touted as Canada's first gigafactory — will be the size of about 112 NHL hockey rinks, said Stewart.
The new factory will be built at 9865 Twin Oaks Dr.
The factory will supply a "substantial amount" of batteries across North America, said Stewart.
The plant's annual production capacity of 45 gigawatt hours is equivalent to powering about 5,000 homes, according to a city official.
What the government and city offered
While each level of government has partnered in the deal to create massive incentives to the companies, it's unclear how much funding the federal and provincial governments have kicked in.
Ontario Premier Doug Ford said in a media briefing Wednesday he could not give exact dollar amounts as to what the province or federal governments contributed, saying "It would compromise some negotiations moving forward with other companies."
However, a city official has detailed Windsor's contributions to the project, which is mainly comprised of a multi-million dollar land deal for the space.
The city is buying land for the site at a cost of between $45 million and $50 million. The city will then lease the land to the joint venture between Stellantis and LG Energy Solution.
City of Windsor officials say this offer is conditional and includes a long closing period in the event the companies back out of the deal.
Two parcels of land are still needed — a portion owner by Enwin Utilities that the city says involves a process to obtain, and a private residence. The city said they've made an offer to the family of the home, which they are considering.
Windsor is also offering a 20-year Community Improvement Plan grant, aimed at easing property taxes in future to match current rates. No dollar figure was attached to this incentive.
Finally, the city also allotting $8 million toward infrastructure projects to support the new site, such as replacing a drain, if needed.
All of the City of Windsor incentives toward the battery factory were approved unanimously by Windsor City council at an in-camera meeting Monday.
During Wednesday's announcement, Dilkens thanked Invest Windsor Essex — a not-for-profit organization supported by the city and the county — for identifying the opportunity.
"Invest Windsor Essex identified this prospect and worked with the parties to showcase the region and the benefits of the region," said Dilkens, who then thanked the team for their hard work.
With files from Katerina Georgieva