$5B investment for first large scale lithium-ion battery production plant in Canada

Stellantis N.V. and LG Energy Solution (LGES) has announced agreements to establish the first large scale, domestic, electric vehicle battery manufacturing facility in Canada. The joint venture company will produce leading edge lithium-ion battery cells and modules to meet a significant portion of Stellantis’ vehicle production requirements in North America.

The joint venture company will invest over $5 billion to establish operations, which will include an all-new battery manufacturing plant located in Windsor, ON. Plant construction activities are scheduled to begin later this year with production operations planned to launch in the first quarter of 2024.

The plant aims to have an annual production capacity of more than 45 GWh and will create an estimated 2,500 new jobs in Windsor and the surrounding areas. Each of the municipal, provincial and federal levels of the Canadian government have agreed to fully support the successful operation of the joint venture company.

With the battery manufacturing plant located in Windsor, home to Canada’s largest automotive cluster, Stellantis and LGES expect the plant to serve as a catalyst for the establishment of a strong battery supply chain in the region. Canada is committed to establishing a broad, local battery ecosystem by leveraging, among other things, its leadership in the generation of electricity from renewable sources.

Carlos Tavares, Stellantis CEO.

“Our joint venture with LG Energy Solution is yet another stepping-stone to achieving our aggressive electrification roadmap in the region aimed at hitting 50 percent of battery electric vehicle sales in the U.S. and Canada by the end of the decade,” said Carlos Tavares, Stellantis CEO.

“We are grateful to (all) levels of government for their support and commitment to help position Canada as a North American leader in the production of electric vehicle batteries.”

According to Youngsoo Kwon, CEO of LG Energy Solution, “through this joint venture, LG Energy Solution will be able to position itself as a critical player in building green energy value chains in the region.

“Creating a joint venture battery manufacturing company in Canada, recognized as one of the leading nations in renewable energy resources, is key for LG Energy Solution as we aim to power more electric vehicles around the world.”

LG Energy Solution has now solidly secured production capacity of over 200 GWh in North America annually, translating into production of 2.5 million electric vehicles.

As part of the Dare Forward 2030 strategic plan, Stellantis announced plans to have global annual battery electric vehicle sales of five million vehicles by 2030, reaching 100 percent of passenger car BEV sales mix in Europe and 50 percent passenger car and light-duty truck BEV sales mix in North America. Stellantis also increased planned battery capacity by 140 GWh to approximately 400 GWh, to be supported by five battery manufacturing plants together with additional supply contracts.

LG Energy Solution, with this latest announcement, has now solidly secured production capacity of over 200 GWh in North America annually, translating into production of 2.5 million electric vehicles. The battery manufacturer has previously announced plans to invest approximately $4.6 billion US into battery facilities in North America. Globally, LGES is on course to expand its international production network in multiple continents, including countries such as Canada, U.S., Poland, Indonesia, China, and South Korea.