Stellantis N.V. and LG Energy Solution - joint venture for North America
Canada's Ontario - Stellantis N.V. and LG Energy Solution (LGES) announced that they had signed legally binding contracts to build Canada's first large-scale domestic plant for the production of electric car batteries (auto delovi). The joint venture company will manufacture cutting edge lithium-ion battery cells and modules to fulfil a sizeable amount of Stellantis' North American car production needs.
In order to launch operations, the joint venture company will spend more than $5 billion CAD ($4.1 billion USD), which will entail building a brand-new battery production facility in Windsor, Ontario, Canada. The first quarter of 2024 will see the start of production following the start of plant construction activities later this year.
Aiming to produce more than 45 gigawatt hours (GWh) annually, the facility will bring to the creation of 2,500 new jobs in Windsor and the neighbouring areas. The Canadian government has committed to fully assisting the joint venture company's successful operation at the municipal, provincial, and federal levels.
Stellantis and LGES anticipate that the battery production facility in Windsor, Ontario, which is home to Canada's largest automotive cluster, would function as a catalyst for the development of a robust battery supply chain in the area. By leveraging its leadership in the production of electricity from renewable sources, among other things, Canada is dedicated to creating a large, local battery ecosystem.
“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.”
Stellantis announced intentions to sell five million battery-electric vehicles annually by 2030 as part of the Dare Forward 2030 strategic plan, with a 100% passenger car BEV sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in North America. In addition, Stellantis boosted anticipated battery capacity by 140 GWh, bringing it to roughly 400 GWh, which will be supported by five battery manufacturing facilities and new supply agreements.
With this most recent announcement, LG Energy Solution has firmly established production capacity in North America of over 200 GWh yearly, translating into production of 2.5 million high performance electric vehicles. The battery producer has already declared intentions to spend roughly USD 4.6 billion on battery manufacturing facilities in North America. LGES is on track to grow its global production network across several continents, including nations like Canada, the United States, Poland, Indonesia, China, and South Korea.