Photo: StellantisStellantis NV
, one of the world’s leading automotive manufacturers, and LG Energy Solution
have agreed to establish the first large-scale, domestic, electric vehicle (EV) battery-manufacturing facility in Canada. The joint venture company will produce lithium-ion battery cells and modules to meet a significant portion of Stellantis’s vehicle production requirements in North America.
The joint venture company will invest over C$5 billion (US$4.1 billion) to establish operations that will include an all-new battery manufacturing plant in Windsor, Ontario. Plant construction is 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 in excess of 45GWh and create about 2,500 new jobs in Windsor and the surrounding areas.
Carlos Tavares, Stellantis’s 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 USA 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 EV batteries.”
Youngsoo Kwon, LG Energy Solution’s CEO, added: “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, recognised 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.”
With this latest announcement, LG Energy Solution has now secured over 200GWh of annual production capacity in North America, which translates into the production of 2.5 million high-performance EVs.
The battery manufacturer has previously announced plans to invest about US$4.6 billion dollars 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 USA, Poland, Indonesia, China and South Korea.