On March 24, Stellantis Group and LG Energy Solution announced that they had signed a binding final agreement to jointly establish Canada's first large-scale electric vehicle battery manufacturing plant in the form of a joint venture. The joint venture will produce advanced lithium-ion battery cells and modules to meet the stellantis Group's majority of automotive production needs in North America.
The joint venture will invest more than C$5 billion ($4.1 billion) to operate, including a new battery manufacturing plant in Windsor, Ontario, Canada. Construction of the plant is scheduled to begin later this year and is expected to start operations in the first quarter of 2024.
The plant aims to have an annual capacity of more than 45GWh and will create around 2,500 new jobs in and around windsor. Canada's federal, provincial and municipal levels of government have agreed to fully support the operation of the joint venture.
The battery manufacturing plant is located in Windsor, Ontario, home to Canada's largest automotive industry cluster, and Stellantis Group and LG New Energy expect the plant to be a catalyst for a strong battery supply chain in the region. Canada is committed to building a broad local battery manufacturing ecosystem by leveraging its leadership in renewable energy generation and more.
Carlos Tavares, CEO of Stellantis Group, said: "Our joint venture with LG New Energy supports Stellantis Group in implementing its aggressive electrification strategy in the region. In line with this strategy, the Stellantis Group aims to achieve 50% of vehicles sold in the United States and Canada as pure electric models by 2030. We thank Canada's federal, provincial, and municipal governments for their support and commitment, which has helped make Canada a leader in the production of electric vehicle batteries in North America. ”
Youngsoo Kwon, CEO of LG New Energy, said: "Through this joint venture with the Stellantis Group, LG New Energy will become a key player in building a green energy value chain in the region. Canada is recognized as one of the leading countries in the renewable energy sector, and for LG New Energy, the establishment of a joint venture battery manufacturing enterprise in Canada is crucial as we aim to power more electric vehicles globally. ”
Canadian Prime Minister Justin Trudeau said: "The announcement today of the establishment of a world-leading electric vehicle battery manufacturing facility in Windsor is an investment in our industrial workers, communities and the future. Similar partnerships are critical to creating more jobs and putting Canada at the forefront of a clean energy economy. Through this partnership, we are creating thousands of jobs that have a positive impact on the lives of our communities and surroundings today, while also ensuring that future generations can live in a clean environment. ”
"Attracting this multi-billion Dollar investment will secure Ontario's central position in the future of automotive and battery manufacturing in North America." In addition to receiving significant investment, we are also connecting the resources, industries and workers of Northern Ontario with the strong manufacturing strength of Southern Ontario to create a local supply chain. Every region of Ontario will benefit from the thousands of jobs and better economic returns and benefits that this project will bring. Ontario Governor Doug Ford said.
"The Stellantis Group is the largest employer in Windsor and has a long history locally. Chrysler Automobiles manufactured here as early as 1925 and recruited workers from Windsor-Essex for generations to come. Today's announcement allows us to secure thousands of local jobs and secure the city's strategic position as a base for Canada's future electric vehicle industry. As electric vehicles become mainstream globally, Windsor will soon become a battery manufacturing hub that powers the industry. Windsor Mayor Drew Dilkens said.
As part of the Stellantis Group's "Dare Forward 2030" strategic plan, the Stellantis Group has announced plans to achieve the following targets by 2030: the Group's annual sales of pure electric vehicles worldwide will reach 5 million units, all passenger cars sold in Europe will be pure electric vehicles, and 50% of passenger cars and light trucks sold in North America will be pure electric vehicles. At the same time, Stellantis Group will increase the previously planned battery capacity reserve by 140GWh, thus increasing it to about 400GWh, which will be supported by 5 battery manufacturing plants and other suppliers.
With this announcement, LG New Energy has ensured that its annual production capacity in North America exceeds 200 GWh, which can support the production of 2.5 million high-performance electric vehicles. The battery maker had previously announced plans to invest about $4.6 billion in its battery plants in North America. Globally, LG N&Q is expanding its international production network in several regions, including Canada, the United States, Poland, Indonesia, China and South Korea.
It is reported that the completion of this transaction is subject to the customary closing conditions, including regulatory approval.