Investment of Billions in Production Plant in Canada

Stellantis and LG Energy Solution plan to jointly build a large electric vehicle battery production facility in Canada. The joint venture plans to manufacture lithium-ion battery cells and modules to meet a large part of Stellantis' production needs in North America.

The joint venture between Stellantis and LG Energy Solution (LGES) plans to invest over 5 billion Canadian dollars (equivalent to 3.6 billion euros) to start operations, which will include a completely new battery factory in Windsor in the Canadian province of Ontario. Construction of the plant is to begin this year - with production scheduled to start in the first quarter of 2024.

The battery factory is aiming for an annual production capacity of over 45 gigawatt hours (GWh) and is expected to create an estimated 2,500 new jobs in Windsor and the surrounding area. The Canadian government has agreed at the municipal and federal level to support the successful operation of the joint venture.

Stellantis and LGES expect the new battery factory to serve as a catalyst for building a strong battery supply chain in the region. Windsor is home to Canada's largest automotive cluster. The country is committed to building a broad-based, local battery ecosystem by leveraging, among other things, its leadership in renewable power generation.

With this latest announcement, LGES has now secured a robust production capacity of over 200 GWh per year in North America, sufficient to produce 2.5 million high-performance electric vehicles. The battery manufacturer has already announced plans to invest around $ 4.6 billion in battery facilities in North America.