French multi-brand Stelantis and Korea’s LG Energy Solutions (LGES) have signed a binding agreement to build Canada’s first large electric vehicle battery manufacturing facility. The company said the joint venture will manufacture lithium-ion battery cells and modules and will meet most of Stelantis’ production needs in North America. The joint venture will invest more than $5 billion in the operation, which will include a brand new battery factory in Windsor, Ontario. Construction of the facility is expected to begin later this year. The start of production is planned for the first quarter of 2024. The battery factory is targeting an annual production capacity of over 45 gigawatt hours (GWh) and will create an estimated 2,500 new jobs in Windsor and the surrounding region.
government aid guarantee
The Government of Canada has declared its willingness to fully support the successful operation of the joint venture at the local and federal levels. The partners anticipate that the new battery factory will serve as a catalyst for building a stronger battery supply chain in the region. Windsor is home to Canada’s largest automotive cluster. The country is committed to building a comprehensive, local battery ecosystem that, among other things, leads it in electricity generation from renewable energy sources.
“Our joint venture with LG Energy Solutions marks another milestone in the way of our ambitious electrification strategy in the region. By the end of the decade, we aim to have 50% of US and Canadian sales coming from battery-powered vehicles,” said Stelantis CEO Carlos Tavares.
According to Yangsu Kwon, CEO of LG Energy Solutions, the collaboration could position his company as a major player in building the green energy value chain in the region.
“Today’s announcement of a world-leading electric vehicle battery manufacturing facility in Windsor is an investment in our people, our communities and our future. Canadian Prime Minister Justin Trudeau believes such partnerships will create new jobs and to keep Canada at the forefront of sustainable business.
As part of the “Dare Forward 2030” strategic plan, the company announced that it aims to sell five million electric vehicles annually worldwide by 2030, representing 100 percent of the sales mix of passenger cars in Europe and 50 percent of the sales mix. corresponds to. For cars and light commercial vehicles in North America. Planned battery capacity will also be increased by 140 GWh to about 400 GWh, supported by five battery factories and additional supply contracts.
For LG Energy Solutions, the latest announcement brings North America solid production capacity of more than 200 GW per year, enough to produce 2.5 million high-performance electric vehicles. The battery maker had already announced plans to invest approximately US$4.6 billion in battery systems in North America.
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