Stellantis and LG Chem's LG Energy Solution (LGES) officially announced an over $5 billion CAD ($4.1 billion USD) investment in a battery gigafactory joint venture in Canada. The two partners have signed definitive agreements.
The intention of a JV in North America was first revealed in October 2021, and earlier this month, rumors emerged about the location in Canada. LGES announced this week a $1.5 billion investment in 51% of the project, tentatively named "LGES-STLA JV".
The Stellantis-LGES joint venture will be the first large-scale lithium-ion battery cell and module production plant in Canada, with an annual production capacity in excess of 45 GWh.
As part of the investment, the partners will build an all-new battery manufacturing plant in Windsor, Ontario, Canada. Plant construction activities are scheduled to begin later this year, while the production is expected to start in Q1 2024 (within two years from now).
The location is crucial for the Stellantis' Windsor Assembly Plant, which is now expected to gradually launch high-volume plug-in vehicle production. Let's recall that in 2020, the company announced EV-related investments at the site, including at least one new model based on a new multi-energy vehicle architecture.
Carlos Tavares, Stellantis CEO 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. 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.”
Youngsoo Kwon, CEO of LG Energy Solution 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. 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-LGES joint venture in Canada in brief:
- Investment: $5 billion CAD ($4.1 billion USD)
- Location: Windsor, Ontario, Canada
- Construction: scheduled to begin later this year (2022)
- Production: production operations planned to launch in the first quarter of 2024
- Type of batteries: lithium-ion battery cells and modules
- Capacity: in excess of 45 GWh/year
- Jobs: roughly 2,500
