VW could reportedly get $8 billion to $13 billion in subsidies over 10 years for its new St. Thomas, Ont., battery plant, announced last month. The incentives consist of annual production subsidies and about $700 million in grants toward the capital cost of building the plant, matching the subsidies offered in the U.S. (Bloomberg)

Talking point: It’s the first detail about the Liberal government’s plant-spending plans, after criticism from Conservative Leader Pierre Poilievre that the project will cost too much. The VW contract reportedly extends subsidies to the company only so long as similar funds remain on offer via the U.S. Inflation Reduction Act. It’s a departure from the strategy the government outlined in the recent budget, where it favoured tax credits of nearly $17 billion over five years over the IRA’s production incentives. Bloomberg’s report said the plant will cost about $7 billion to build, and that the government is also negotiating with LG and Stellantis over support for their $5 billion battery plant in Windsor, Ont. Separate reporting from the Toronto Star said that the VW plant’s federal and provincial capital expenditure subsidies combined could amount to $2 billion.