Stellantis and LG Energy Solutions (LGES) announced that the two companies entered into a memorandum of understanding to form a new joint venture to produce battery cells and modules for the North American market, back in October. A suitable location for the new plant was considered to be under review at the time.
According to Automotive News Canada, both companies have chosen Windsor-Essex County in Ontario as the future home for its new joint venture plant. The battery cells produced at the new facility will be distributed amongst the Stellantis assembly plants in the United States, Canada, and Mexico. It is predicted that the facility will start production in Q1 of 2024 and will have an annual production capacity of 40-gigawatt-hours.
Stellantis itself is planning for 40% of its total vehicles sold in the United States by the end of the decade.
Both companies expect the construction of the new facility to begin in Q2 2022. An official announcement should be released later this morning.
Earlier this morning, Stellantis announced the construction of another new battery production facility in Italy for its Automotive Cells Company (ACC) joint venture TotalEnergies/Saft and Mercedes-Benz. We will update this post as more information becomes available.
The joint venture company will invest more than $5 billion CAD ($4.1 billion USD) to establish operations, which will include an all-new battery manufacturing plant located in Windsor, Ontario, Canada. Plant construction activities are scheduled to begin later this year, with production operations planned to launch in the first quarter of 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. Each of the municipal, provincial, and federal levels of the Canadian government has agreed to fully support the successful operation of the joint venture company.
With the battery manufacturing plant located in Windsor, Ontario, home to Canada’s largest automotive cluster, Stellantis and LGES expect the plant to serve as a catalyst for the establishment of a strong battery supply chain in the region. Canada is committed to establishing a broad, local battery ecosystem by leveraging, among other things, its leadership in the generation of electricity from renewable sources.
“Our joint venture with LG Energy Solution is yet another stepping stone to achieving our aggressive electrification road map in the region, aimed at hitting 50% of battery-electric vehicle sales in the U.S. 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.”
“Through this joint venture, LG Energy Solution will be able to position itself as a critical player in building green energy value chains in the region,” said Youngsoo Kwon, CEO of LG Energy Solution. “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.”
“Today’s announcement of a world-leading facility to build electric-vehicle batteries in Windsor is an investment in our workers, our communities, and our future. Partnerships like these are critical to creating new jobs and putting Canada on the cutting edge of the clean economy. By working together, we are creating thousands of new jobs, making a difference in the lives of people now, and making sure that future generations have a clean environment to live in,” said Prime Minister of Canada Justin Trudeau.
“Attracting this multi-billion-dollar investment will secure Ontario’s place as a North American hub for building the cars and batteries of the future. 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. Every region of Ontario will benefit with thousands of jobs being created and a stronger economy that works for everyone,” said Ontario Premier Doug Ford.
“Stellantis is Windsor’s largest employer and has a rich history in this community. Chrysler began operations in this community in 1925 and has employed generations of Windsor–Essex workers at its facility. With this announcement, we are securing the future for thousands more local workers and securing Windsor’s strategic location as the home of Canada’s electric vehicle future. As the world pivots to EVs, Windsor will soon be home to the battery manufacturing facility that powers it all,” said Mayor of Windsor Drew Dilkens.
LGES, with this latest announcement, has now solidly secured a production capacity of over 200 GWh in North America annually, translating into the production of 2.5 million high-performance electric vehicles. The battery manufacturer has previously announced plans to invest approximately $4.6 billion (USD) into battery facilities in North America. Globally, LGES is on course to expand its international production network in multiple continents, including countries such as Canada, U.S., Poland, Indonesia, China, and South Korea.
The closing is subject to customary closing conditions, including regulatory approvals.