Stellantis in Talks with Leapmotor to Build Plant in Canada

[International Cooperation] Stellantis and Leapmotor are in preliminary discussions to jointly repurpose Stellantis’s idle factory in Brampton, Ontario, for electric vehicle production.

Key Development: First Major Chinese EV Investment Triggered by New China-Canada Tariff Policy

Stellantis and Leapmotor Technology are in early-stage negotiations to utilize Stellantis’s idle facility in Brampton, Ontario, to manufacture electric vehicles. If realized, this would become the first major joint venture project by a Chinese automaker in Canada following the China-Canada agreement in January 2026 to lower tariffs on electric vehicles.

Strategic Rationale: Dual Drivers of Idle Asset Revitalization and Local Compliance

The plant was originally slated to begin production of the Jeep Compass in 2025 but was put on hold due to changes in U.S. tariff policies. Canadian Minister of Industry Melanie Joly emphasized that any new investment must prioritize local supply chains and comply with labor standards. The two companies already established a joint venture, Leapmotor International, in 2024 to advance their global EV strategy.

Industry Impact: Reshaping North America’s EV Manufacturing Landscape

This move not only reactivates Stellantis’s idle capacity but also provides Leapmotor with a strategic gateway into the North American market via Canada, helping it circumvent high tariffs. It could prompt more Chinese automakers to follow suit with similar investments.