Auto maker Stellantis and LG Energy Solution (LGES) are set to establish a large scale, domestic, electric vehicle battery manufacturing facility in Canada via a joint venture. The JV company will produce sufficient lithium-ion battery cells and modules to meet a significant portion of Stellantis’s vehicle production requirements in North America.
The project will involve an investment of C$5bn (US4.1bn) to establish operations, which will include a battery manufacturing plant located in Windsor, Ontario. Plant construction activities are scheduled to begin later this year with production operations planned to launch in the first quarter of 2024. The companies are targeting an annual production capacity in excess of 45GWh.
“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.”
As part of it Dare Forward 2030 strategic plan, Stellantis hopes to have global annual BEV sales of 5,000,000 vehicles by 2030, reaching 100% of passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in North America. Stellantis has also increased planned battery capacity by 140GWh to approximately 400GWh, to be supported by five battery manufacturing plants together with additional supply contracts.