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Stellantis, LG Energy Solution to invest $4.1 billion in Canadian EV battery plant

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Chris Feuell, CEO of Chrysler brand of Stellantis, introduces the all-electric Chrysler Airflow Concept vehicle during a Stellantis press event at CES 2022 at the Las Vegas Convention Center on January 5, 2022 in Las Vegas, Nevada.
Alex Wong | Getty Images

DETROIT – Automaker Stellantis and LG Energy Solution will invest about $4.1 billion through a joint venture to establish the first large-scale, domestic, electric vehicle battery manufacturing facility in Canada, the companies announced Wednesday.

Construction of the plant in Windsor, Ontario is scheduled to begin later this year with operations planned to launch in the first quarter of 2024, according to the transatlantic automaker. Once fully operational, the plant is expected to have an annual production capacity of more than 45 gigawatt hours and will create an estimated 2,500 new jobs, Stellantis said.

The new plant is part of the automaker’s plans to accelerate its EV investment to achieve sales of 5 million EVs globally by 2030. That includes all sales in Europe and 50% of passenger car and light-duty truck sales in North America.

The announcement is the latest for automakers regarding battery plants, also known as gigafactories, as the companies attempt to pivot to all-electric vehicles during this decade. Nearly every major automaker globally has announced such plans, including allocating billions to the production of batteries – the most critical component for such vehicles.

Stellantis – the world’s fourth-largest automaker – was formed in January 2021 by the merger of Fiat Chrysler and France-based Groupe PSA. It has 14 individual auto brands, including Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Peugeot.

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