Canadian Contractors Sue Over Unpaid Work at Windsor EV Battery Plant

Windsor, Ontario — Multiple Canadian contractors have filed lawsuits against South Korean firms involved in the NextStar Energy electric vehicle battery plant project, claiming they have not been paid millions of dollars for their work. The facility, a joint venture between Stellantis and LG Energy Solution, is backed by over $15 billion in government incentives.

Contractors allege that companies such as GModis and CK Canada Inc. mismanaged the project, failed to pay for completed work, and caused delays in the construction schedule. The City of Windsor, which owns the land where the plant is being built, has been named in construction liens.

Legal actions have been taken in the Ontario Superior Court of Justice, with contractors citing breach of contract, negligence, and seeking damages for unpaid costs. Notably, earlier year, Consult Mechanical Inc. initiated a lawsuit against CK Canada Inc., and more recently, Sylvan Canada filed a $45 million lawsuit against GModis.

The project has faced several obstacles, including safety issues, lack of proper licensing, and constant changes in project specifications that have resulted in substantial cost overruns and delays. As of early July 2025, the initiative is reportedly running months behind schedule.

Construction on the NextStar facility began in 2022, with plans to start cell production later this year. However, these lawsuits may further complicate the project’s timeline and approval process.