Categories: Canada

There’s now a playbook to court EV investment

For those who look exterior, it’s raining cash for electric-vehicle battery crops and their provide chains. There are gentle showers in the intervening time, however the forecast requires a deluge.

As with rain, such cash comes pouring down in pockets, so the tough half is attracting it. There must be a plan.

The $5 billion that shall be invested to create an LG-Stellantis battery plant in Windsor, Ont. — the most important single funding in Canadian automotive historical past, by the way in which — didn’t simply fall from the sky. Windsor, particularly Make investments WindsorEssex, had its geese in a row after which did the rain dance of its life.

There are numerous transferring elements to such a deal, however key amongst them was that Windsor preemptively assembled a turnkey business land package deal positioned close to key transportation. It’s no exaggeration to say that when Windsor was approached by LG Power early final yr about establishing an EV battery plant, Make investments WindsorEssex merely dropped a folder on desk and stated, “Right here you go.”

Sure, with no Stellantis vehicle-assembly plant in Windsor, the deal won’t have gone by. And with out vital authorities cash, the deal additionally won’t have gone by. However what is definite is that if the town of Windsor didn’t pull collectively the fitting plot of land in the fitting spot and provide it to the LG-Stellantis three way partnership for the fitting worth — on a lease foundation — the deal undoubtedly wouldn’t have gone by.

How “Windsor received the deal achieved” is detailed in a narrative by Managing Editor Grace Macaluso, and in an age of disappearing industrial land, having the fitting package deal was the deal maker.

This isn’t the one instance. Simply ask Sarah Houde, CEO of Montreal-based Propulsion Quebec, which put collectively the offers for two big-money battery-materials crops in Bécancour, Que., positioned equidistant between Montreal and Quebec Metropolis.

Bécancour’s chief benefit is robust infrastructure hyperlinks by rail, highway and a deep-water port. The suitable land package deal in the fitting spot, and on the proper worth and on the proper time. Sound acquainted?

In Windsor’s case, there was some danger as there have been no ensures. Make investments WindsorEssex knew the tough dimension of the land package deal wanted to help a large-scale battery plant. Town owned some, however it needed to buy the majority of it from a number of house owners. However in spite of everything that, would there be suitors? What if it was all for naught and the 220 acres (90 hectares) of bowling-alley flat land sandwiched by rail, freeway and worldwide airport sat vacant perpetually?

No such drawback. Earlier than the LG-Stellantis deal, Make investments WindsorEssex was in different discussions. Its preparations are thought-about the catalyst that received the deal signed.

Whether or not we understand it, Windsor simply handed a playbook to each different Canadian metropolis about methods to appeal to battery-plant funding. With billions extra {dollars} coming (story on Web page 18), cities must be ready as a result of that is only the start.

It’s raining and the forecast requires a deluge.

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