The EV battery manufacturing facility to be built in Windsor is being planned to have an annual production capacity of more than 45GWh
Stellantis, LGES partner on an EV battery manufacturing facility in Canada. (Credit: Lee Rosario from Pixabay)
Dutch automaker Stellantis and South Korean battery manufacturing firm LG Energy Solution (LGES) have agreed to jointly invest over C$5bn ($4.1bn) to build an electric vehicle (EV) battery manufacturing facility in Canada.
The joint venture company to be created by the firms will be engaged in producing lithium-ion battery cells and modules. The output from the new facility is expected to cover a considerable portion of the vehicle production needs of Stellantis in North America.
The new battery manufacturing plant will be constructed in Windsor, Ontario.
Construction activities related to the plant are slated to be launched later this year.
The partners aim to begin production operations in Q1 2024.
The EV battery manufacturing facility is being planned to have an annual production capacity of over 45GWh. It will generate an estimated 2,500 new roles in Windsor and the neighbouring areas.
In July 2021, Stellantis unveiled a €30bn electrification strategy, which includes plans to procure more than 260GWh of batteries by the end of 2030. The company’s strategy is supported by five gigafactories in Europe and North America.
Stellantis CEO Carlos Tavares said: “Our joint venture with LG Energy Solution is yet another stepping stone to achieving our aggressive electrification road map in the region, aimed at hitting 50% of battery-electric vehicle sales in the U.S. 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.”
The forming of the joint venture is subject to regulatory approvals and customary closing conditions.
With the proposed facility in Canada, LG Energy Solution has now secured production capacity of more than 200GWh per year in North America. This is equivalent to the production of 2.5 million EVs.
Separately, LG Energy Solution has announced an investment of KRW1.7 trillion ($1.4bn) to build a new 11GWh cylindrical battery plant in Queen Creek, Arizona, US.
Construction on the cylindrical battery plant is slated to start in Q2 2022. It is planned to begin mass production in the second half of 2024.
LG Energy Solution CEO Youngsoo Kwon said: “With the establishment of our new Arizona plant, LG Energy Solution aims to deliver unparalleled consumer value in the rapidly growing cylindrical battery market.
“LGES will provide the most dependable, competitive and advanced products to rise as the best business partner that our clients value and trust.”