Joint venture to build +$5 billion EV battery plant in Ontario
- March 23, 2022
LG Energy Solution (LGES), one of the world’s foremost battery manufacturers, and automaker Stellantis N.V. have announced a joint venture that will invest over $5 billion CAD ($4.1 billion USD) in a facility to manufacture lithium-ion batteries for EVs in Canada.
The announcement was made by representatives of the federal and Ontario provincial governments together with the mayor of Windsor, ON, where the facility will be located. Representatives from LGES and Stellantis were also on hand.
"Today's announcement of a world-leading facility to build electric vehicle batteries in Windsor is an investment in our workers, our communities and our future,” said Prime Minister Justin Trudeau. “Partnerships like these are critical to creating new jobs and putting Canada on the cutting edge of the clean economy. By working together, we are creating thousands of new jobs, making a difference in the lives of people now and making sure that future generations have a clean environment to live in."
The battery facility will be Canada’s first large scale domestic EV battery production facility, with an annual production capacity in excess of 45 gigawatt hours. It will supply Stellantis plants in Windsor and across North America. The facility will be operational by 2024.
LGES owns 51 percent of the joint venture, which is tentatively named LGES-STLA JV. Stellantis owns 49 percent. Further details will be disclosed after due diligence is completed.
Plant construction will begin later this year. The project is expected to create 2,500 skilled jobs in Windsor and the surrounding area. Ottawa says the investment will not only position Canada as a global leader in the production of EV batteries but also support the development of a sustainable domestic battery manufacturing sector in Canada.
“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% of battery electric vehicle sales in the US and Canada by the end of the decade,” said Carlos Tavares, CEO of Stellantis. “We are grateful to the municipal, provincial and federal levels of government for their support and commitment to help position Canada as a North American leader in the production of electric vehicle batteries.”
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.
With this latest announcement, LG Energy Solution (LGES) has secured production capacity of over 200 GWh in North America annually, translating into production of 2.5 million high performance electric vehicles. The battery manufacturer has previously announced plans to invest approximately $4.6 billion USD 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, the US, Poland, Indonesia, China and South Korea.
Read the Stellantis announcement here.