Chrysler, Dodge, Jeep, and Citroen parent Stellantis and LG Energy Solution (LGES) announced today plans to form a joint venture company to establish a $4.1 billion large-scale, EV battery plant in Canada, supporting Stellantis’ vehicle production requirements in North America.
The plant, which will be located in Windsor, Ontario, will produce lithium-ion battery cells and modules, and aims to have an annual production capacity in excess of 45 GWh. Construction activities are scheduled to begin later in 2022, with production operations starting in the first quarter of 2024.
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.”
Earlier this month, Stellantis launched its new strategic plan, Dare Forward 2030, which envisions a major ramp in the electrification of the company’s vehicle fleet, including a goal to reach 5 million annual battery electric vehicles (BEV) sales by 2030, with a 100% BEV sales mix in Europe, and 50% in the US. The company also increased its planned battery capacity goal to 400 GWh in 2030, up from 260 GWh.
Carlos Tavares, Stellantis CEO, said:
“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% of battery-electric vehicle sales in the U.S. 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.”
Commenting on the announcement, Prime Minister of Canada Justin Trudeau, said:
“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.”