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Stellantis and LG Energy JV to build C$5 billion battery facility Metal Tech News - March 23, 2022
The batteries produced at the Ontario factory will power a significant portion of the EVs being manufactured in North America for Stellantis, such as this electric Ram 1500 pickup.
Jeep's first-ever fully electric SUV is set to be launched in 2023.
Global automaker Stellantis and battery manufacturer LG Energy Solution have forged a partnership that will invest US$4.1 billion (C$5 billion) to establish the first large-scale, electric vehicle battery manufacturing facility in Canada.
To be built in Windsor, Ontario, this new facility will produce leading-edge lithium-ion battery cells and modules that will power a significant portion of the EVs being manufactured in North America for Stellantis, which owns Chrysler, Dodge, Fiat, Jeep, Maserati, Opel, Peugeot, Ram, and several other automobile brands.
As part of its Dare Forward 2030 strategic plan, Stellantis has set a target of selling 5 million battery EVs per year by 2030. To support this endeavor, the global automaker plans to build the capacity to produce 400 GWh of batteries globally per year.
"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 US and Canada by the end of the decade," said Stellantis CEO Carlos Tavares.
The Ontario battery plant, which is expected to be in production early in 2024, is being built to have an annual production capacity of more than 45 gigawatt hours. By way of comparison, Tesla Gigafactory Nevada has an estimated production capacity of 35 GWh per year.
With this partnership in Ontario, LG Energy Solution has deals to produce more than 200 GWh of lithium-ion battery capacity in North America annually, which is enough to power 2.5 million high-performance EVs.
"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 LG Energy Solution CEO Youngsoo Kwon. "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."
With the battery plant being built just across the border from Detroit, Michigan, and in the heart of Canada's largest automotive manufacturing region, Stellantis and LG Energy Solution expect the enormous facility to serve as a catalyst for the establishment of a strong battery supply chain in Ontario.
"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. 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," said Ontario Premier Doug Ford.
Read more about Ontario's strategy to leverage its mineral endowment in the north and manufacturing capacity in the south to establish a complete electric vehicle battery supply chain at An Ontario critical minerals strategy in the March 23, 2022 edition of Metal Tech News.
Ontario's critical minerals strategy and the building of the new battery gigafactory in the province coincides with Canada's commitment to establish a broad, local battery ecosystem by leveraging its mineral wealth and leadership in the generation of electricity from renewable sources.
"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 Canada 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."
With more than 16 years of covering mining, Shane is renowned for his insights and and in-depth analysis of mining, mineral exploration and technology metals.
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