Stellantis, LG to build Canada's first large-scale EV battery plant

Automaker Stellantis and lithium-ion battery developer LG Energy Solution will jointly build Canada's first large-scale electric vehicle battery manufacturing facility in Windsor, Ontario, the companies said March 23.

The plant will have a battery production capacity of more than 45 GWh/year and supply "a significant portion of Stellantis' vehicle production requirements in North America," according to a joint statement.

Operations at the facility are expected to begin in early 2024.

"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," Stellantis CEO Carlos Tavares said in the statement.

The Netherlands-based Stellantis and South Korea-based LGES said the plant will serve as a catalyst to establish a stronger battery supply chain in Ontario.

"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," LGES CEO Youngsoo Kwon said.

Stellantis and LGES will invest more than $4.1 billion in the project, with further support from governments at the local, regional, and federal levels in Canada.

"Partnerships like these are critical to creating new jobs and putting Canada on the cutting edge of the clean economy," Canadian Prime Minister Justin Trudeau said in the statement.

Stellantis plans to have global annual EV sales of 5 million vehicles by 2030. This includes expectations that EVs will account for 100% of its passenger car sales in Europe and 50% of its passenger car and light-duty truck sales in North America.

Ontario aims to be EV leader

Ontario Premier Doug Ford said the battery manufacturing investment positions Ontario to grow its leadership in the automaking and battery industries.

"As we secure game-changing investments, we're also connecting resources, industries, and workers in northern Ontario with the manufacturing might of southern Ontario to build up home-grown supply chains," Ford said in a separate statement.

In 2019, Ontario unveiled a 10-year plan to evolve its auto manufacturing industry amid electrification initiatives. The Stellantis-LGES plant represents the second phase of the region's plan that seeks to "transform the province's automotive supply chain to build the cars of the future," according to the statement.

"Through our Driving Prosperity auto plan, strategic investments across our integrated supply chains, and by reducing the cost of doing business in Ontario by nearly $7 billion/year, our government is staking Ontario's claim as a leader in the emerging North American EV battery industry," said Vic Fedeli, Ontario's minister of economic development, job creation, and trade.

LGES boosts North American investments

The plan for Ontario's battery plant follows another announcement from LGES March 22 to expand capacity at its Holland, Michigan, battery plant with a $1.7 billion investment.

"LG Energy Solution's $1.7 billion investment in Michigan will create 1,200 good jobs in West Michigan and enable us to continue to lead in building and deploying next-generation transportation solutions," Governor Gretchen Whitmer said in a statement. "Thanks to LGES' continued investment in our state, Michigan's leadership role in battery manufacturing will only get stronger as the automotive industry moves toward an electric future."

The investment will increase battery production capacity at the Holland facility fivefold, but LGES did not disclose the plant's capacity.

"I am optimistic about realizing LG Energy Solution's aim to achieve carbon-neutral by 2050 and about creating ripple effects of environment-conscious business in Michigan and beyond," LGES Michigan President Bonchul Koo said.

The investments in Ontario and Michigan will lift LGES' battery production capacity in North America to more than 200 GWh/year, which can support the production of 2.5 million EVs.

Stellantis targets higher planned battery capacity

In addition to Ontario, Stellantis also announced March 23 that it would build another battery gigafactory in Italy.

The automaker now expects its planned battery capacity to reach 400 GWh/year, supported by five battery manufacturing plants and additional supply contracts.

The gigafactory in Italy will be established at Stellantis' existing Termoli plant with the company's Automotive Cells JV partners, TotalEnergies/Saft and Mercedes-Benz. The plant will have a minimum capacity of 120 GWh by 2030.