Editors note: A prior version of this article’s headline did not reflect that these layoffs impacted construction works on site, rather than NextStar Energy employees. We have been informed that these layoffs did not impact NextStar Energy employees.
About 200 construction workers were laid off last week at Canada’s first large-scale electric vehicle battery manufacturing plant.
Sylvan Canada‘s operations vice president Eric Farron said Friday that close to 200 workers received orders to “immediately demobilize” Thursday night. The layoffs affected 145 millwrights and ironworkers, 45 electricians, and three pipe fitters.
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The company behind the plant, NextStar Energy — a $5 billion partnership of Stellantis and South Korea’s LG Energy Solution — said the layoffs do not impact its workforce or operations.
“Change in works are a standard part of operations and reflect ongoing efforts to align project needs,” spokesperson Daniela Ferro said. She declined to specify what changes prompted the layoffs or whether they were temporary.
The layoffs come after the Windsor facility achieved a major milestone in October, becoming the first plant in Canada to produce battery modules for electric vehicles. The plant is not yet producing battery cells, which are currently shipped from LG Energy Solution’s facility in Poland. Cell production is expected to begin this fall.
Work on the 4.23 million-square-foot plant started in August 2022. When fully operational, the plant will have an annual production capacity of 49.5 gigawatt hours, enough to power 450,000 vehicles per year and meet 40% of Stellantis’ North American EV production needs.
The project required $15 billion in Canadian federal and provincial subsidies after construction briefly halted in 2023 when NextStar explored more attractive US incentives.
The layoffs follow similar action across Canada’s emerging EV battery sector. Ford abandoned its $1.8 billion EV plan at Oakville in July 2024, switching to gasoline-powered pickup production instead, and Umicore continues to pause construction of its battery materials facility.
Mike Meloche, business agent for UA Local 527, which represents affected plumbers and steamfitters, said many workers were sent home Friday, with some told not to return until Wednesday.
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