Stellantis and LG Energy Solution to Invest $4.1 Billion to Build Electric Vehicle Battery Plant in Canada
(RTTNews) – Dutch automaker Stellantis NV (STLA) and LG Energy Solution have announced plans to invest approximately $4.1 billion through a joint venture to build an electric vehicle battery manufacturing plant in large scale in Canada.
The joint venture will produce lithium-ion battery cells and modules to meet a significant portion of Stellantis’ vehicle production needs in North America.
Construction of the Windsor, Ont., plant is expected to begin later this year with operations expected to begin in the first quarter of 2024, according to the transatlantic automaker. Once fully operational, the plant is expected to have an annual production capacity of more than 45 gigawatt hours and will create around 2,500 new jobs, Stellantis said.
“Our joint venture with LG Energy Solution is another stepping stone towards realizing our aggressive electrification roadmap in the region aimed at reaching 50% of battery electric vehicle sales in the United States 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 helping position Canada as a North American leader in the production of batteries for electric vehicles.
“Through this joint venture, LG Energy Solution will be able to position itself as a key player in building green energy value chains in the region,” said Youngsoo Kwon, CEO of LG Energy Solution. “Establishing a battery manufacturing joint venture in Canada, recognized as one of the leading countries for renewable energy resources, is critical for LG Energy Solution as we aim to power more electric vehicles globally. .”
Stellantis announced plans to have annual global battery electric vehicle sales of five million vehicles by 2030, reaching 100% of passenger car BEV sales mix in Europe and 50% of BEV sales mix passenger cars and light trucks in North America.
Stellantis has also increased planned battery capacity from 140 GWh to around 400 GWh, which will be supported by five battery manufacturing plants as well as additional supply contracts.
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