Stellantis, LG Energy to build for EV battery factory in Canada

Stellantis and LG Energy said in October they were planning a battery-cell making plant in North America as Stellantis aims to expand its electric vehicle lineup.
By : Bloomberg
| Updated on: 19 Mar 2022, 09:16 AM
File photo used for representational purpose only. (Reuters)
File photo used for representational purpose only. (Reuters)
File photo used for representational purpose only. (Reuters)
File photo used for representational purpose only.

Stellantis NV and LG Energy Solution will build their new battery plant in Ontario, Canada, according to a person familiar with the matter, with an official announcement likely on March 23. 

The Canadian government’s incentives for clean-energy businesses helped lure the companies, the person said, asking not to be identified because the decision isn’t public.

Stellantis and LG Energy said in October they were planning a battery-cell making factory in North America, as Stellantis -- whose brands include Jeep and Ram -- expands its electric vehicle lineup with a goal of raising U.S. EV sales to 40% of deliveries by the end of the decade. The pair said construction of the plant is due to begin next quarter, with production slated to kick off in early 2024.

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(Also read | Ukraine-Russia war: Stellantis suspends auto import and export with Russia)

A spokesperson for LG Energy said there wasn’t any information to share as yet. A spokesperson for Stellantis also had no comment. When asked for comment, Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade, said he “is confident the province will land at least one EV battery manufacturing plant before the election in June." Ontario’s next provincial election is expected to be held in June.  

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There have been a rash of tie-ups and arrangements between automakers and battery manufacturers in recent months as the world hurtles toward a clean energy future. Transitioning to electric cars is a key plank of that.

(Also read | Stellantis aims to double revenue in 2030 as it goes electric)

South Korean rival Samsung SDI Co. signed a memorandum of understanding with Stellantis in October to construct a plant in the U.S. that should have an annual output of around 23 gigawatt hours by the first half of 2025, while Panasonic Corp. is engaged in talks over the site for a new U.S. factory that would supply Tesla Inc. and potentially other EV manufacturers.

In September, Ford Motor Co. and Korea’s SK Innovation Co. announced plans to spend $11.4 billion constructing an assembly plant and three battery factories in Tennessee and Kentucky.

 

First Published Date: 19 Mar 2022, 09:16 AM IST
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