Stellantis, LG Energy Solution To Invest $4.1 Bln To Build EV Battery Plant In Canada

(RTTNews) - Dutch automaker Stellantis NV (STLA) and LG Energy Solution have announced plans to invest about $4.1 billion through a joint venture to build a large scale, domestic, electric vehicle battery manufacturing facility in Canada.

The joint venture company will produce lithium-ion battery cells and modules to meet a significant portion of Stellantis' vehicle production requirements in North America.

Construction of the plant in Windsor, Ontario is scheduled to begin later this year with operations planned to launch in the first quarter of 2024, according to the transatlantic automaker. Once fully operational, the plant is expected to have an annual production capacity of more than 45 gigawatt hours and will create an estimated 2,500 new jobs, Stellantis 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," said Carlos Tavares, Stellantis CEO. "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."

"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 Youngsoo Kwon, CEO of LG Energy Solution. "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 announced plans to have global annual battery electric vehicle sales of five million vehicles by 2030, reaching 100% of passenger car BEV sales mix in Europe and 50% 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.