Stellantis and LGES Resume Construction on Windsor Gigafactory

NextStar Energy, the vehicle battery joint venture between Stellantis N.V. and LG Energy Solution (LGES), today signed a binding agreement that secures the future of battery cell and module production in Windsor, Ontario and honors the commitments that were made by the Canadian government to level the playing field with the U.S. Inflation Reduction Act (IRA).

“The IRA fundamentally changed the landscape for battery production in North America, making it challenging to produce competitively priced, state-of-the-art batteries in Canada without an equivalent level of support from the government,” said Mark Stewart, Stellantis Chief Operating Officer North America. “We are pleased that the Federal government with the support of the Provincial government, came back and met their commitment of leveling the playing field with the IRA. This collective effort enabled the deal to close, and we are now resuming construction on the site in Windsor. We are very grateful to the governments for their leadership to resolve and bring this deal to fruition, as well as Lana Payne and her team from Unifor for tirelessly advocating alongside us in our shared commitment to protecting thousands of new jobs as we achieve our electrified future propelled by our Dare Forward 2030 strategic plan.”

“It’s a good day not only for our joint venture but also for Canada,” said Dong-Myung Kim, president and head of the Advanced Automotive Battery Division of LG Energy Solution. “We are happy to finally move forward with building the country’s first major battery plant and be a central part of the local battery ecosystem. We are grateful to the Federal and Provincial government for working together and to everyone who worked tirelessly to get this deal done.”

“Thanks to the agreement and continuous support from the Windsor community, NextStar Energy can now focus on what we do best,” said Danies Lee, CEO of NextStar Energy. “We will soon produce state-of-the-art batteries here in Windsor, and we’re excited to grow and thrive with the community.”

NextStar Energy is one of eight battery plants that LGES has secured in North America in response to its growing EV market.

Stellantis recently celebrated 98 years in Canada. Its investment in the NextStar Energy battery joint venture combined with the investments previously announced for the Automotive Research and Development Centre Battery Lab, Windsor Assembly Plant, and Brampton Assembly Plant demonstrates the Company’s commitment to a sustainable future in the very demanding context that the electrification transformation is creating, and Canada’s role in the global EV ecosystem.

Effective immediately, all construction at the NextStar Energy battery plant in Windsor will resume, with production operations planned to launch in 2024. The plant aims to have an annual production capacity in excess of 45-gigawatt hours (GWh) and will create an estimated 2,500 new jobs in Windsor and the surrounding areas.

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