Stellantis and LG Energy Solution Announce Joint Venture for Large Scale Lithium-Ion Battery Facility in Canada
Stellantis, a multinational automotive manufacturing firm, has joined with LG Energy Solution, a storage battery manufacturing company, for a large scale lithium-ion battery production facility in Canada. The facility is the first large scale, domestic, and electric vehicle battery manufacturing plant targeted to be operational in 2024 and create new jobs. The joint venture company will produce lithium-ion battery cells and modules to meet Stellantis' vehicle production requirements in North America.
The joint venture will see $4.1 billion in investment to establish operations, including setting up a new battery manufacturing plant in Windsor, Ontario, Canada. The construction activities will begin later this year.
The facility will have a yearly production capacity of 45 gigawatt-hours (GWh) and expects to generate over 2500 new jobs in Winsdor and nearby areas. Every Municipal, Provincial and Federal level of the Canadian government has been extending support for the successful operation of the joint venture company.
The plant will help establish a strong battery supply chain in Winsdor, Ontario.
Carlos Tavares, Stellantis CEO, said: "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. 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.”
Youngsoo Kwon, CEO of LG Energy Solution, said: "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.”
According to the Dare Forward 2030 strategic plan, Stellantis expects to bolster annual battery electric vehicle sales of five million by 2030, 50 per cent passenger car and light-duty truck BEV sales mix in North America and reaching 100 per cent of passenger car BEV sales mix in Europe. The firm also increased its planned battery capacity by 140 GWh to around 400 GWh.
With this new announcement, LG Energy Solution has solidified a yearly manufacturing capacity of over 200 GWh in North America, equating to 2.5 million high-performance electric vehicles. The battery producer earlier stated that it intends to invest around USD 4.6 billion in North American battery plants. LGES is on track to grow its global manufacturing network across various continents, including Canada, the United States, Poland, Indonesia, China, and South Korea.
