Stellantis, LG to make electric vehicle batteries in Ontario

Stellantis and LG Energy Solutions will build a large electric vehicle (EV) battery factory in Windsor, Ontario, employing about 2,500 people across a river from Detroit.

The venture plans to spend $4.1 billion to build the new plant on a field in the Canadian city. It’s expected to open early in 2024 and can make battery cells and modules for over 500,000 EVs per year.

The plant will supply batteries for a “significant portion” of Stellantis’ North American production. Stellantis said the venture plans to build two battery factories in North America. The other location has not been announced.

The companies said municipal, provincial, and federal levels of the Canadian government are supporting the joint venture, but it gave no details of tax breaks or other incentives.

The automaker, formed last year with the merger of Fiat Chrysler and France’s PSA Peugeot, is the world’s fourth-largest automaker. It plans to sell 5 million EVs by 2030, with 50% of its North American passenger car and light truck sales going fully electric by 2030. Stellantis plans to sell 100% electric passenger cars in Europe by 2030.

Stellantis announced its existing minivan factory in Windsor will build an EV but hasn’t given other details of where new EV models will be made.

LG Energy Solutions plans to spend $4.6 billion on battery factories in North America. It announced plans for a $1.7 billion expansion in western Michigan adding up to 1,200 jobs by 2025.

The project at the company’s site in Holland, located about 155 miles northwest of Detroit, was approved for $56.5 million in state grants and a 20-year tax break worth $132.6 million.