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Stellantis, LG Energy Solution To Invest $4.1 Billion Into Battery Plant in Canada

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【Summary】Construction of the plant in Windsor, Ontario is expected to become operational in the first quarter of 2024 and is reportedly the first large-scale EV battery manufacturing plant in Canada.

Original Vineeth Joel Patel    Apr 03, 2022 7:00 AM PT
Stellantis, LG Energy Solution To Invest $4.1 Billion Into Battery Plant in Canada

Up until now, Stellantis has been slow to invest and develop electric cars. That's going to change soon, as the massive brand looks to sell 5 million electric vehicles globally by 2030. To do so, Stellantis has come out with a multipronged approach that includes all of its brands, including Jeep, Dodge, and Chrysler. To get all of these electric cars onto the road, Stellantis has partnered with LG Energy Solution to invest approximately $4.1 billion into a new facility in Canada where the two will manufacture electric vehicle batteries.

Stellantis Sets Up Shop In Canada

According to Stellantis, the factory will become the first large-scale, domestic, EV battery manufacturing plant in Canada. The plant will be located in Windsor, Ontario and is set to become operational in 2024. Once the manufacturing facility is up and running, the plant will have an annual production capacity of approximately 45 gigawatt-hours and will be responsible for creating more than 2,500 new jobs.

"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 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."

Why Choose Ontario?
 
Choosing Canada as the location for the plant was done because the two companies believe that they'll be able to establish a "strong battery supply chain in the region." Windsor, Ontario, according to Stallantis, is Canada's hub for automakers. Stellantis currently has a few manufacturing plants in Canada with the automaker's Canadian headquarters being located in Windsor. So, choosing the location for a new battery plant makes sense.

"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 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."

The announcement isn't surprising and it's a similar one that a lot of other automakers have made as they pivot toward offering all-electric vehicles. Producing batteries in-house, which is something Tesla has made far more common, is something a lot of automakers will have to do if they want to be profitable and meet their lofty goals. Batteries are the most critical component of EVs and if there's anything the semiconductor shortage has shown us, it's that automakers can't rely on outside parties for components anymore.  
                                                                                                                                                  

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