Multiple Canadian contractors allege they have not been paid millions of dollars for work on the NextStar Energy EV battery plant in Windsor, Ontario, a joint venture between Stellantis and LG Energy Solution, which received over $15 billion in government incentives. Lawsuits have been filed against South Korean firms like GModis and CK Canada Inc., alleging mismanagement, unpaid work, and issues with construction schedules and materials. The City of Windsor, which owns the land, has also been named in construction liens.
'Egregious': Inside legal fights over a Canadian EV battery plant getting $15B in tax breaks
NextStar EnergyStellantis North AmericaCanadaOntarioWindsorWindsor-EssexCity of WindsorBusinessLayoffsLawsuitsLegal
AI Summary
TL;DR: Key points with love ❤️Multiple Canadian contractors allege they have not been paid millions of dollars for work on the NextStar Energy EV battery plant in Windsor, Ontario, a joint venture between Stellantis and LG Energy Solution, which received over $15 billion in government incentives. Lawsuits have been filed against South Korean firms like GModis and CK Canada Inc., alleging mismanagement, unpaid work, and issues with construction schedules and materials. The City of Windsor, which owns the land, has also been named in construction liens.
Trending- 1 2008: Financial crisis leads to mass layoffs in manufacturing
- 2 2022: Construction kicks off on NextStar facility in Windsor's east end
- 3 2022 November: Jeil M&S Canada Inc. established
- 4 2023: CK Canada Inc. established
- 5 2024 April: NextStar awards Sylvan contract through GModis
- 6 2024 April: GModis Inc. incorporated in Ontario
- 7 Early 2025: Project running months behind schedule
- 8 Earlier this year: Consult Mechanical Inc. sues CK Canada Inc.
- 9 June 10: Jeil M&S Canada Inc. places $52.6 million construction lien
- 10 Last month (June): GModis's alleged interference leads NextStar to remove Sylvan from project, Sylvan lays off nearly 200 workers
- 11 Early July: Sylvan Canada files $45 million lawsuit against GModis
- 12 Later this year: Cell production scheduled to begin
- Millions of dollars in alleged unpaid work for Canadian contractors
- Layoffs of nearly 200 workers by Sylvan Canada
- Legal disputes and construction liens on the project
- Potential cost overruns for the taxpayer-supported plant
- Questions raised about the utility of public money invested in litigation
What: Canadian contractors are suing South Korean firms for alleged unpaid work and mismanagement on the NextStar Energy EV battery plant project.
When: Lawsuits filed in early July (Sylvan Canada), earlier this year (Consult Mechanical Inc.), and June (Jeil M&S Canada Inc.). Construction kicked off in 2022, cell production scheduled for later this year.
Where: Windsor, Ontario, Canada.
Why: Contractors allege non-payment, mismanagement, safety issues, lack of proper licensing, and constant changes in scope/specifications by South Korean firms, leading to significant cost overruns and delays.
How: Through multiple lawsuits filed in the Ontario Superior Court of Justice, alleging breach of contract, negligence, and seeking unpaid costs and damages. Construction liens have been placed on city-owned land.