ONTARIO, CANADA – Stellantis N.V. and LG Energy Solution announced they have executed binding, definitive agreements to establish the first large scale, domestic, electric vehicle battery manufacturing facility in Canada.
The joint venture company will produce leading edge lithium-ion battery cells and modules to meet a significant portion of Stellantis’ vehicle production requirements in North America.
The joint venture company will invest over $5 billion CAD ($4.1 billion USD) to establish operations, which will include an all-new battery manufacturing plant located in Windsor, Ontario, Canada. Plant construction activities are 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 45 gigawatt hours (GWh) and will create an estimated 2,500 new jobs in Windsor and the surrounding areas. Each of the Municipal, Provincial and Federal levels of the Canadian government have agreed to fully support the successful operation of the joint venture company.
With the battery manufacturing plant located in Windsor, Ontario, home to Canada’s largest automotive cluster, Stellantis and LGES expect the plant to serve as a catalyst for the establishment of a strong battery supply chain in the region. Canada is committed to establishing a broad, local battery ecosystem by leveraging, among other things, its leadership in the generation of electricity from renewable sources.
“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.”
Canadian Prime Minister Justin Trudeau called the announcement “an investment in our workers, our communities and our future.”
“Partnerships like these are critical to creating new jobs and putting Canada on the cutting edge of the clean economy,” Trudeau said. “By working together, we are creating thousands of new jobs, making a difference in the lives of people now and making sure that future generations have a clean environment to live in.”
