According to foreign media reports, LG New Energy will build two new battery plants in North America, with an annual production capacity of about 56GWh.
On March 23, LG New Energy and Stellantis said the two companies would invest more than $4.1 billion to build a new electric vehicle battery factory in Windsor, Ontario, Canada. Among them, LG New Energy will invest about $1.5 billion and will hold 51% of the joint venture; Stellantis will hold 49% of the shares.
The plant is expected to begin operations in 2025 with a capacity of approximately 45 GWh, which will create 2,500 jobs and supply the Steelantis Windsor plant and other plants in North America.
Image source: Stellantis
Stellantis declined to comment on the incentives the plant received. In a statement, Canada's Department of Innovation, Science and Economic Development said details of the plant project were "trade secrets" and could only be disclosed after the "investigation was completed" was completed.
Carlos Tavares, CEO of Stellantis, said in a statement, "The battery joint venture with LG New Energy is an important step for us to achieve electrification in North America. Our goal is to achieve 50% of sales in the U.S. and Canada by 2030 from pure electric vehicles. ”
Image source: LG New Energy
On March 24, LG New Energy said in a separate statement that it would spend 1.7 trillion won (about $1.4 billion) to build its own battery factory in Queen Creek, Arizona, with a capacity of 11 GWh, to provide cylindrical batteries for electric start-ups. Construction of the plant will begin in the second quarter of this year and mass production is expected in the second half of 2024.
LG New Energy said that if it adds factories in Ontario and Arizona, the total battery capacity of LG New Energy in North America will reach at least 200 GWh in 2025, which is about enough for 2.5 million electric vehicles.
In North America, competition from battery manufacturers to increase capacity is intensifying. It is reported that CATL is considering a new $5 billion battery factory in North America, and Panasonic is also negotiating the location of a new battery factory in the United States.
Mark Stewart, Chief Operating Officer of Stellantis North America, said the company will announce the location of its second battery plant in the U.S. in the coming weeks. Last October, Stellantis announced that it would form a joint venture with South Korean battery maker Samsung SDI to build a new battery factory in the United States. The plant will be operational in 2025 and is expected to have a capacity of 40 GWh.
As part of its electrification plan, Stellantis will build five new large battery plants in North America and Europe, which will have a capacity of 400 GWh by 2030.