Stellantis, LG Energy Solution to invest $4.1B in Canada battery plant

By Kim Hye-ran & Kim Tae-gyu, UPI News Korea

LG Energy Solution Executive Vice President Kim Dong-myung announces his company’s joint investment with Stellantis to build an EV battery factory in Ontario, Canada, on Wednesday. Photo courtesy of LG Energy Solution

SEOUL, March 25 (UPI) -- Stellantis and LG Energy Solution announced plans to more than $4.1 billion to build a battery plant in Canada.

The companies plan to build the factory in Ontario, where they will produce lithium-ion battery cells and modules for Stellantis' electric vehicles, which will be shipped to North American markets.

They said Wednesday the new facilities would have an annual production capacity of more than 45GWh and would be operational in the first quarter of 2024, creating 2,500 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 U.S. and Canada by the end of the decade," Stellantis CEO Carlos Tavares said in a statement.

LG Energy Solution CEO Kwon Young-soo said the new factory is vital for its strategy of powering more EVs around the world.

"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," Kwon said.

Stellantis is the world's fourth-largest automaker, and LG Energy Solution is the No. 2 manufacturer of electric vehicle batteries globally. The two have teamed up in the EV market.

Last year, the two companies announced a plan to construct a battery factory with a capacity of 40GWh in the United States, with a completion date in 2024.

"The EV market is doubling every year in North America. Hence, the demand for EV batteries is expected to outstrip their supply in a few years," Daelim University automotive Professor Kim Pil-soo told UPI News Korea