Stellantis and LG Energy Solution have signed binding, definitive agreements to build a large scale, electric vehicle battery manufacturing facility in Canada.
The joint venture company will manufacture lithium-ion battery cells and modules to meet a major portion of Stellantis’ vehicle production requirements in North America.
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The JV will invest more than $5bn to set up operations, which will include an all-new battery manufacturing facility located in Windsor, Ontario, Canada.
Activities for the construction of the plant are slated to commence later this year, with production operations expected to commence in Q1 2024.
This facility will have an annual production capacity of more than 45 gigawatt hours (GWh) and will create about 2,500 new jobs in Windsor and the surrounding areas.
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Stellantis CEO Carlos Tavares 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.”
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By GlobalDataLG Energy Solution CEO Youngsoo Kwon 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,” said, CEO of. “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.”
Stellantis, as part of the Dare Forward 2030 strategic plan, announced plans to have global annual battery electric vehicle sales of five million vehicles by 2030, touching 100% of passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in North America.
The firm also boosted its planned battery capacity by 140GWh to around 400GWh, which would be supported by five battery manufacturing plants along with further supply contracts.
With this latest move, LG Energy Solution has secured production capacity of more than 200 GWh in North America annually, which means production of 2.5 million electric vehicles.
The battery manufacturer earlier announced investment plans of approximately $4.6bn into its battery facilities in North America.
The closing of this deal is subject to customary closing conditions, including approvals from regulatory bodies.
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Caption: The facility will manufacture lithium-ion battery cells and modules to meet a major portion of Stellantis’ electric vehicle production requirements in North America Credit: Lee Rosario from Pixabay
