Stellantis, LG Energy Solution JV for Battery Plant in Canada

The EV parade grows. Click to Enlarge.

Stellantis N.V. and LG Energy Solution (LGES) today announced they have executed binding, definitive agreements to establish the first large scale, domestic, electric vehicle battery manufacturing facility in Canada. Outlines of the plan were first announced last October. The JV will produce lithium-ion battery cells and modules to meet a “significant portion” of Stellantis’ vehicle production requirements in North America. Stellantis is the result of a merger of FCA, aka Fiat Chrysler, and Peugeot.

The new joint venture company will invest more than $5 billion CAD ($4.1 billion) to establish operations, which will include an all-new battery manufacturing plant located in Windsor, Ontario, Canada. Plant construction is scheduled to begin later this year. Production is planned to launch in the first quarter of 2024. Stellantis is Windsor’s largest employer and has a long history there. Chrysler began operations in 1925 and has employed generations of Windsor–Essex workers at its facility. (AutoInformed on: Stellantis, LG Energy JV for North American Battery Production; Dare Forward 2030 – Stellantis Survival Plan Unveiled; Finally – First Jeep EV Teased by Stellantis)

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.

As part of the EV leadership mantle Stellantis wants to wear, it wants 100% of sales in Europe and 50% of sales in the United States to be battery-electric vehicles (BEVs) by the end of this decade. “We plan to have more than 75 BEVs and reach global annual BEV sales of 5 million vehicles by 2030,” said CEO Carlos Tavares on a recent media call that AutoInformed participated in.

“Today’s announcement of a world leading facility to build electric vehicle batteries in Windsor is 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. 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,” said Justin Trudeau, Prime Minister of Canada.

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