LG Energy-Stellantis JV Looks To Invest $5 Billion For Ontario’s First Large-Scale EV Battery Facility
The joint venture of LG Energy Solution and Stellantis NV (NYSE: STLA) announced a $5 billion investment to build Ontario’s “first large-scale” electric vehicle battery manufacturing plant. The facility is expected to be built in Windsor to manufacture batteries for EVs in Canada.
“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.
The 4.5-million square foot facility is targeted to hold a production capacity of 45 gigawatt-hours, supplying Stellantis plants in North America, as well as create 2,500 new jobs.
“The facility is quite staggering … about the size of 112 NHL hockey rinks,” said Stellantis COO for North America Mark Stewart.
The construction is expected to start in Q1 2024 and is targeted to be fully operational by 2025.
The announcement is the latest in a series of investment commitments in the province’s EV sector from global battery manufacturers and automakers, which now stand at roughly $11 billion in total.
LG Energy said it will spend US$1.46 billion in the joint venture, effectively owning a 51% stake and US$637 million further for ensuring credit support.
The announcement also comes a day after LG Energy committed around US$1.4 billion investment to build the first-ever cylindrical-type battery manufacturing plant in North America. The facility, to be built in Arizona, is expected to hold 11 gigawatt-hour production capacity and is targeted to operate fully by the second half of 2024.
Stellantis last traded at US$15.81 on the NYSE.
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