Canada Lands Its First Large Scale Lithium-Ion Battery Production Plant

In a joint venture, Stellantis and LG Energy Solution will invest $4.1B in Canada's first large scale, domestic, electric vehicle battery manufacturing facility in Windsor, Ontario.

Windsor, Ontario will be the site of Canada’s first large scale, domestic, electric vehicle battery manufacturing facility thanks to a joint venture between Stellantis N.V. and LG Energy Solution (LGES). The plant will produce leading edge lithium-ion battery cells and modules to help meet Stellantis’ North American vehicle production requirements.

Lithium-Ion Battery ProductionThe joint venture company will invest $4.1 billion in the all-new battery manufacturing plant. Construction is scheduled to begin later this year with production operations planned to launch in the first quarter of 2024. The project is will create an estimated 2,500 jobs in the Windsor region.

“Our joint venture with LG Energy Solution is yet another stepping stone to achieving our aggressive electrification roadmap 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.”

Windsor, Ontario is home to Canada’s largest automotive cluster, and Stellantis and LGES expect the plant to serve as a catalyst for the establishment of a strong battery supply chain in the region.

“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,” said Canadian Prime Minister Justin Trudeau. “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.”

“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,” said Ontario Premier Doug Ford. “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.”

As part of its Dare Forward 2030 strategic plan, Stellantis plans to have global annual battery EV sales of five million vehicles by 2030, reaching 100% of passenger car battery electric vehicle (BEV) sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in North America. Stellantis has also increased planned battery capacity by 140 GWh to approximately 400 GWh, to be supported by five battery manufacturing plants together with additional supply contracts.