Stellantis continues to strengthen its ecosystem linked to sustainable mobility and electrification with a new investment in battery production. The group led by Carlos Tavares announced the signing of binding agreements with LG Energy Solutions to build a hub dedicated to large-scale electric vehicle accumulators in Canada. The joint venture will manufacture state-of-the-art lithium-ion battery cells and modules to meet a significant portion of Stellantis’ vehicle manufacturing needs in North America.
The joint venture will invest more than $ 5 billion to start operations, which will include a brand new battery manufacturing facility in Windsor, Ontario, Canada. The start of the activities for the construction of the plant is expected by the end of the year and the start of production operations will start 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 up to 2,500 new jobs in Windsor and surrounding areas. At the municipal, provincial and federal levels the Canadian government has agreed to fully support the success of the joint venture operation.
With the location of the production plant in Windsor, Ontario, home to Canada’s largest automotive cluster, Stellantis and LGES expect the plant to act as a catalyst for building a strong battery supply chain in the region. Canada is committed to establishing a large local battery ecosystem by leveraging a leadership position in renewable electricity generation, among other factors. As part of the Dare Forward 2030 strategic plan, Stellantis has announced plans to globally achieve five million unit battery electric vehicle sales in 2030, reaching 100% of the European car sales mix with BEVs and 50% of passenger cars and light commercial vehicles in North America. Stellantis also increased the planned battery capacity from 140 GWh to around 400 GWh, thanks to the support of five battery manufacturing plants and additional supply contracts.
LG Energy Solution, with this latest announcement, has secured itself a production capacity of over 200 GWh in North America each year, which will enable the production of 2.5 million high-performance electric vehicles. The battery maker previously announced plans to invest approximately $ 4.6 billion in dedicated battery manufacturing facilities in North America. Globally, LGES is in the process of expanding its international manufacturing network to more continents, including countries such as Canada, the United States, Poland, Indonesia, China and South Korea.
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