When electric school bus manufacturer Lion Electric opened its sprawling 900,000 square-foot factory in Joliet last year, Gov. JB Pritzker and both Illinois senators attended the ceremony.

The facility — the first new vehicle assembly plant to open in metropolitan Chicago since 1965 — was hailed as a source of good jobs and a step forward into a carbon-free future.

But now Quebec-based Lion, which has struggled in recent months, says it is suspending operations at its Illinois plant and temporarily laying off approximately 400 workers, in both Canada and the U.S.

That will leave the company with about 300 employees, according to a written statement released by Lion.

The EV company has reached an agreement with its creditors that will extend key deadlines for repayment until Dec. 16, the statement said.

The company is actively evaluating options including selling the business or some of its assets and seeking creditor protection under the Companies’ Creditors Arrangement Act, a Canadian federal law. The act allows insolvent companies to stay in business while seeking compromises with their creditors.

“There can be no assurance that (Lion) will be successful in pursuing and implementing any such alternatives, nor any assurance as to the outcome or timing of any such alternatives,” the written statement said.

A Lion spokesperson declined to comment further.

Pritzker’s press secretary, Alex Gough, said in a written statement that llinois has made tremendous strides toward turning the state into a manufacturing hub for electric vehicles.

“Our partnership with Lion Electric continues to be a vital piece of that strategy,” the statement said.

“While this measure is temporary, we remain hopeful that Lion will continue to serve as a pillar of the (nearby) Joliet community, and we are confident their 900,000-square-foot facility will continue to be a standard-bearer as the largest all-electric US plant dedicated to medium and heavy-duty commercial vehicle production.”

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