With an aim to produce leading-edge lithium-ion battery cells and modules to meet a significant portion of its vehicle production requirements in North America, Stellantis has executed binding, definitive agreements with LG Energy Solution (LGES).
Accordingly, the agreement will pave the way to establish Canada's first large-scale, domestic, electric-vehicle battery manufacturing facility.
The joint venture company will invest more than $ 4.1 billion 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).
With the battery manufacturing plant located in Windsor, Ontario, home to Canada's largest automotive cluster, Stellantis and LGES expect the plant to establish a strong battery supply chain in the region.
As part of the Dare Forward 2030 strategic plan, Stellantis announced plans to have global annual battery-electric vehicle sales of five million 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 also increased planned battery capacity by 140 GWh to approximately 400 GWh, supported by five battery manufacturing plants and additional supply contracts.
Carlos Tavares, CEO, Stellantis, said, 'Our joint venture with LGES 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 US and Canada by the end of the decade.'
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. In addition, the battery manufacturer has previously announced plans to invest approximately $ 4.6 billion 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, the US, Poland, Indonesia, China and South Korea.
Youngsoo Kwon, CEO, LG Energy Solution, said, 'Through this joint venture, LGES will be able to position itself as a critical player in building green energy value chains in the region. Creating a joint venture battery manufacturing company in Canada, recognised as one of the leading nations in renewable energy resources, is key for LGES as we aim to power more electric vehicles worldwide.'
Prime Minister of Canada Justin Trudeau said, '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.'