Stellantis, which has its North American headquarters in Auburn Hills, and LG Energy Solution today announced they have executed binding, definitive agreements to establish a $4.1 billion large-scale, domestic, electric-vehicle battery manufacturing facility in Windsor.
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.
Plant construction activities are scheduled to begin later this year, with production operations planned to launch in the first quarter of 2024.
The plant plans to have an annual production capacity of 45-plus gigawatt hours (GWh) and will create an estimated 2,500 new jobs. Stellantis-LGES state 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.
“Our joint venture with LG Energy Solution is yet another stepping stone to achieving our aggressive electrification road map in the region, aimed at hitting 50 percent of battery-electric vehicle sales in the U.S. and Canada by the end of the decade,” says Carlos Tavares, CEO of Stellantis. “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.”
With the battery manufacturing plant located in Windsor, 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.
“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,” says 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 is Windsor’s largest employer, and its Chrysler division began operations in the community in 1925.
As part of its Dare Forward 2030 strategic plan, Stellantis announced plans to have global annual battery-electric vehicle sales of 5 million vehicles by 2030, reaching 100 percent of passenger car BEV sales mix in Europe and 50 percent 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.
LG Energy Solution, with this latest announcement, has now solidly secured production capacity of over 200 GWh in North America annually, translating into production of 2.5 million high-performance electric vehicles.
The battery manufacturer has previously announced plans to invest approximately $4.6 billion (USD) into battery facilities in North America. Globally, LGES is on course to expand its international production network in multiple continents, including countries such as Canada, U.S., Poland, Indonesia, China, and South Korea.
The closing is subject to customary closing conditions, including regulatory approvals.