WINDSOR — With the support of the Ontario, federal and municipal governments, LG Energy Solution and automaker Stellantis are joining forces to build the province’s first large-scale electric vehicle (EV) battery manufacturing plant.
The joint venture between LG Energy Solution, Ltd. (LGES) and Stellantis N.V. will invest more than CDN $5 billion (USD $4.1 billion) to build a facility in Windsor to manufacture batteries for EVs in Canada, representing the largest automotive manufacturing investment in the history of the province. This historic investment puts Ontario on a path to becoming one of the most vertically integrated automotive jurisdictions in the emerging North American EV market. The battery facility, with a production capacity of 45 gigawatt hours (GWh) that will supply Stellantis plants in the North American market, will employ an estimated 2,500 people. Construction activities are scheduled to begin later this year with production operations planned to launch in the first quarter of 2024. The facility will be fully operational by 2025.
“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 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.”
This investment will accelerate Ontario’s 10-year vision for the Driving Prosperity ― The Future of Ontario’s Automotive Sector plan. Phase 2 of Driving Prosperity demonstrates the government’s commitment to transform the province’s automotive supply chain to build the cars of the future, including the production of hybrid and fully battery electric vehicles, EV battery and component production, and increasing exports of Ontario-made auto parts and innovations.
Ontario’s top-quality manufacturing talent, clean and competitive electricity, access to investment-ready sites, and commitments to streamline the approvals process continue to make the province a destination for major investments, ensuring that everyone in Ontario benefits from the auto sector’s long-term growth and success. This game-changing investment helps secure the province’s position as a competitive player in the low-carbon economy of the future.
Each component of the battery supply chain plays an important and interconnected role in the production of electric vehicles. Today’s investment will advance the province’s efforts at becoming a globally competitive, vertically integrated EV battery manufacturing jurisdiction. “Through our Driving Prosperity auto plan, strategic investments across our integrated supply chains, and by reducing the cost of doing business in Ontario by nearly $7 billion annually, our government is staking Ontario's claim as a leader in the emerging North American EV battery industry,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By harnessing advanced manufacturing processes and emerging technologies, and leveraging the critical mineral wealth in Northern Ontario, our province has what it takes to develop and build the car of the future, and the batteries those cars need.”
Quick Facts
Stellantis’ investments in Ontario encompass the entire EV ecosystem, including EV assembly, next-generation R&D, and battery manufacturing.
With 30 years of experience in advanced battery technology, LG Energy Solution is a leading global battery manufacturer delivering advanced lithium-ion batteries for electric vehicles mobility & IT applications and energy storage systems.
Vehicle assembly and auto parts production directly supports nearly 100,000 Ontario jobs, with hundreds of thousands more spin-off jobs in communities across the province.
Over the past 18 months, the automotive sector in Ontario has seen more than $11 billion in investments for new vehicle production mandates and battery manufacturing, including this one by LGES and Stellantis.
More than $4 billion of these investments are in transformative electric vehicle production at Ontario assembly plants.
Ontario is building on the growing success of Ontario’s Ivy Charging Network by investing up to $91 million that will add more EV chargers at locations like highway rest stops, carpool parking lots, Ontario Parks, and in community hubs, like hockey arenas and municipal parks.
In March, the government completed consultations on the designation of three priority proposed electricity transmission lines in the Southwest. If approved, it would expedite the review process so electricity transmission infrastructure could be built sooner.
In February 2021, Windsor City Council adopted an economic development strategy called Windsor Works - An Economic Development Strategy for the City's Future Growth focusing on the future of the automotive sector.
Quotes
"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. 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."
- The Rt Honourable Justin Trudeau
Prime Minister of Canada
"Today’s announcement is great news for Canadian jobs and the future of Canada’s economy. We are seeing the largest investment in Canada’s auto sector, and it is clear that companies recognize Canada’s strong position as a global leader for EV battery manufacturing. We will continue to work hard to attract other companies and encourage them to set up shop in Canada to help create jobs, generate economic benefits and contribute to a net-zero emission future."
- The Honourable François-Philippe Champagne
Minister of Innovation, Science and Industry
"LG Energy Solution, together with Stellantis and the Canadian and Ontario Governments, are confident they will set a solid foundation in setting up a battery value-chain in the region, speeding up the green energy transition. 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. 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."
- Youngsoo Kwon
CEO of LG Energy Solution
"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 per cent of battery electric vehicle sales in the U.S. and Canada by the end of the decade. 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."
- Carlos Tavares
CEO of Stellantis
"Stellantis is Windsor’s largest employer and has a rich history in this community. Chrysler began operations in this community in 1925 and has employed generations of Windsor–Essex workers at its facility. With this announcement, we are securing the future for thousands more local workers and securing Windsor’s strategic location as the home of Canada’s electric vehicle future. As the world pivots to EVs, Windsor will soon be home to the battery manufacturing facility that powers it all."
- His Worship Drew Dilkens Mayor of Windsor