Windsor Lands Largest Auto Industry Investment In Canada’s History

Government of Canada welcomes largest investment in Canada’s auto industry with the first large-scale domestic EV battery manufacturing facility

MEDIA RELEASE via Government of Canada

OTTAWA, ON., March 23, 2022 – The future of Canada’s transportation sector is green. So to create middle-class jobs and position our economy for success in a low-carbon world, the government is bringing major international investments to Canada that will secure a strong electric vehicle (EV) battery supply chain.

Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, the Honourable Doug Ford, Premier of Ontario, and Drew Dilkens, Mayor of Windsor, announced that their governments are welcoming a major investment from LG Energy Solution, one of the leading battery manufacturing companies in the world, and automaker Stellantis N.V. to create a joint venture in Canada. The joint venture will see a total investment of over $5 billion CAD ($4.1 billion USD) in a facility to manufacture batteries for EVs in Canada. This will position Canada as a global leader in the EV manufacturing supply chain. The battery facility will be located in Windsor, Ontario, and will supply Stellantis plants in Windsor and across North America. The facility will be operational by 2025.

The Government of Canada has been working closely with both companies to secure this investment given that the project aligns with the government’s commitment to develop a Canadian battery ecosystem that supports clean technology and industrial transformation. Today’s announcement is yet another step forward. The project is expected to create 2,500 well-paying jobs.

This investment will not only position Canada as a global leader in the production of EV batteries but also support the development of a sustainable domestic battery manufacturing sector in Canada.

Ontario Secures Largest Auto Investment in Province’s History

MEDIA RELEASE via Office of the Premier

WINDSOR — With the support of the Ontario, federal and municipal governments, LG Energy Solution and automaker Stellantis are joining forces to build the province’s first large-scale electric vehicle (EV) battery manufacturing plant.

The joint venture between LG Energy Solution, Ltd. (LGES) and Stellantis N.V. will invest more than CDN $5 billion (USD $4.1 billion) to build a facility in Windsor to manufacture batteries for EVs in Canada, representing the largest automotive manufacturing investment in the history of the province. This historic investment puts Ontario on a path to becoming one of the most vertically integrated automotive jurisdictions in the emerging North American EV market. The battery facility, with a production capacity of 45 gigawatt hours (GWh) that will supply Stellantis plants in the North American market, will employ an estimated 2,500 people. Construction activities are scheduled to begin later this year with production operations planned to launch in the first quarter of 2024. The facility will be fully operational by 2025.

“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. “As we secure game-changing investments, we’re also connecting resources, industries and workers in northern Ontario with the manufacturing might of southern Ontario to build up home-grown supply chains. Every region of Ontario will benefit with thousands of jobs being created and a stronger economy that works for everyone.”

This investment will accelerate Ontario’s 10-year vision for the Driving Prosperity ― The Future of Ontario’s Automotive Sector plan. Phase 2 of Driving Prosperity demonstrates the government’s commitment to transform the province’s automotive supply chain to build the cars of the future, including the production of hybrid and fully battery electric vehicles, EV battery and component production, and increasing exports of Ontario-made auto parts and innovations.

Ontario’s top-quality manufacturing talent, clean and competitive electricity, access to investment-ready sites, and commitments to streamline the approvals process continue to make the province a destination for major investments, ensuring that everyone in Ontario benefits from the auto sector’s long-term growth and success. This game-changing investment helps secure the province’s position as a competitive player in the low-carbon economy of the future.

Each component of the battery supply chain plays an important and interconnected role in the production of electric vehicles. Today’s investment will advance the province’s efforts at becoming a globally competitive, vertically integrated EV battery manufacturing jurisdiction.

“Through our Driving Prosperity auto plan, strategic investments across our integrated supply chains, and by reducing the cost of doing business in Ontario by nearly $7 billion annually, our government is staking Ontario’s claim as a leader in the emerging North American EV battery industry,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By harnessing advanced manufacturing processes and emerging technologies, and leveraging the critical mineral wealth in Northern Ontario, our province has what it takes to develop and build the car of the future, and the batteries those cars need.”

Stellantis and LG Energy Solution to Invest Over $5 Billion CAD in Joint Venture for First Large Scale Lithium-Ion Battery Production Plant in Canada

MEDIA RELEASE via Stellantis

Ontario, Canada – Stellantis N.V. and LG Energy Solution (LGES) today announced they have executed binding, definitive agreements to establish the first large scale, domestic, electric vehicle battery manufacturing facility in Canada. The joint venture company will produce leading edge lithium-ion battery cells and modules to meet a significant portion of Stellantis’ vehicle production requirements in North America.

The joint venture company will invest over $5 billion CAD ($4.1 billion USD) to establish operations, which will include an all-new battery manufacturing plant located in Windsor, Ontario, Canada. Plant construction activities are scheduled to begin later this year with production operations planned to launch in the first quarter of 2024.

The plant aims to have an annual production capacity in excess of 45 gigawatt hours (GWh) and will create an estimated 2,500 new jobs in Windsor and the surrounding areas. Each of the Municipal, Provincial and Federal levels of the Canadian government have agreed to fully support the successful operation of the joint venture company.

With the battery manufacturing plant located in Windsor, Ontario, home to Canada’s largest automotive cluster, Stellantis and LGES expect the plant to serve as a catalyst for the establishment of a strong battery supply chain in the region. Canada is committed to establishing a broad, local battery ecosystem by leveraging, among other things, its leadership in the generation of electricity from renewable sources.

“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 US and Canada by the end of the decade,” said Carlos Tavares, Stellantis CEO. “We are grateful to the Municipal, Provincial and Federal levels of government for their support and commitment to help position Canada as a North American leader in the production of electric vehicle batteries.”

“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,” said Youngsoo Kwon, CEO of LG Energy Solution. “Creating a joint venture battery manufacturing company in Canada, recognized as one of the leading nations in renewable energy resources, is key for LG Energy Solution as we aim to power more electric vehicles around the world.”

“Today’s announcement of a world leading facility to build electric vehicle batteries in Windsor is an investment in our workers, our communities and our future. Partnerships like these are critical to creating new jobs and putting Canada on the cutting edge of the clean economy. By working together, we are creating thousands of new jobs, making a difference in the lives of people now and making sure that future generations have a clean environment to live in.” – The Rt Honourable Justin Trudeau, Prime Minister of 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. As we secure game-changing investments, we’re also connecting resources, industries and workers in northern Ontario with the manufacturing might of southern Ontario to build up home-grown supply chains. Every region of Ontario will benefit with thousands of jobs being created and a stronger economy that works for everyone.” – Premier Doug Ford

“Stellantis is Windsor’s largest employer and has a rich history in this community. Chrysler began operations in this community in 1925 and has employed generations of Windsor–Essex workers at its facility. With this announcement, we are securing the future for thousands more local workers and securing Windsor’s strategic location as the home of Canada’s electric vehicle future. As the world pivots to EVs, Windsor will soon be home to the battery manufacturing facility that powers it all.” – Mayor of Windsor, Drew Dilkens

As part of the Dare Forward 2030 strategic plan, Stellantis announced plans to have global annual battery electric vehicle sales of five million vehicles by 2030, reaching 100% of passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in North America. Stellantis also increased planned battery capacity by 140 GWh to approximately 400 GWh, to be supported by five battery manufacturing plants together with additional supply contracts.

LG Energy Solution, with this latest announcement, has now solidly secured production capacity of over 200 GWh in North America annually, translating into production of 2.5 million high performance electric vehicles. The battery manufacturer has previously announced plans to invest approximately USD 4.6 billion dollars into battery facilities in North America. Globally, LGES is on course to expand its international production network in multiple continents, including countries such as Canada, U.S., Poland, Indonesia, China and South Korea.

The closing is subject to customary closing conditions, including regulatory approvals.

Quotes:

– The Rt Honourable Justin Trudeau, Prime Minister of Canada

“Today’s announcement is great news for Canadian jobs and the future of Canada’s economy. We are seeing the largest investment in Canada’s auto sector, and it is clear that companies recognize Canada’s strong position as a global leader for EV battery manufacturing. We will continue to work hard to attract other companies and encourage them to set up shop in Canada to help create jobs, generate economic benefits and contribute to a net-zero emission future.”

– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

“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. As we secure game-changing investments, we’re also connecting resources, industries and workers in northern Ontario with the manufacturing might of southern Ontario to build up home-grown supply chains. Every region of Ontario will benefit with thousands of jobs being created and a stronger economy that works for everyone.”

– The Honourable Doug Ford, Premier of Ontario

“Through our Driving Prosperity auto plan, strategic investments across our integrated supply chains, and by reducing the cost of doing business in Ontario by nearly $7 billion annually, our government is staking Ontario’s claim as a leader in the emerging North American EV battery industry. By harnessing advanced manufacturing processes and emerging technologies, and leveraging the critical mineral wealth in Northern Ontario, our province has what it takes to develop and build the car of the future, and the batteries those cars need.”

– The Honourable Vic Fedeli, Ontario Minister of Economic Development, Job Creation and Trade

“Stellantis is Windsor’s largest employer and has a rich history in this community. Chrysler began operations in this community in 1928 and has employed generations of Windsor–Essex workers at its facility. With this announcement, we are securing the future for thousands more local workers and securing Windsor’s strategic location as the home of Canada’s electric vehicle future. As the world pivots to EVs, Windsor will soon be home to the battery manufacturing facility that powers it all.”

– His Worship Drew Dilkens, Mayor of Windsor

“LG Energy Solution, together with Stellantis and the Canadian and Ontario Governments, are confident they will set a solid foundation in setting up a battery value-chain in the region, speeding up the green energy transition. 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. Creating a joint venture battery manufacturing company in Canada, recognized as one of the leading nations in renewable energy resources, is key for LG Energy Solution as we aim to power more electric vehicles around the world.”

– Youngsoo Kwon, CEO of LG Energy Solution

“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. We are grateful to the municipal, provincial and federal levels of government for their support and commitment to help position Canada as a North American leader in the production of electric vehicle batteries.”

– Carlos Tavares, CEO of Stellantis

Quick Facts – Canada:

LG Energy Solution is a leading global battery manufacturer delivering advanced lithium-ion batteries for electric vehicle, mobility and IT applications and for energy storage systems (ESS). With 30 years of experience in advanced battery technology, LGES is committed to developing innovative technologies that will bring the future of energy a step closer. LG Energy Solution’s robust global network spans across North America, Europe, Asia and Australia, with a 23% share of the global EV battery market.
Stellantis is a leading global automaker and mobility provider that offers clean, connected, affordable and safe mobility solutions. Its ambitious electrification and software strategies and the creation of an innovative ecosystem of strategic, game-changing partnerships are driving its transformation into a sustainable mobility tech company.
In February 2021, Windsor City Council adopted an economic development strategy called Windsor Works: An economic development strategy for the city’s future growth. This plan focused municipal economic development efforts on talent retention, partnerships with academic institutions and the future of the automotive sector—and electric vehicle components in particular. The implementation of Windsor Works is helping make investments like the one by LGES and Stellantis possible through a new department at City Hall focused on attracting investment and creating good jobs in Windsor.
Details of this agreement are subject to commercial confidentiality and cannot be disclosed at this time. More details will follow once due diligence is completed.
Plant construction activities are scheduled to begin later this year, with production operations planned to launch in the first quarter of 2024. The facility will be operational by 2025.
This investment aligns with the Government of Canada’s strengthened climate plan—A Healthy Environment and a Healthy Economy.
The Government of Canada has set a target of achieving 100% zero-emission vehicle (ZEV) sales by 2035. Accelerating the ZEV target will support Canada’s commitment to reach net-zero emissions by 2050 and its pledge at the United Nations 2019 Climate Action Summit.

Quick Facts – Ontario:

• Stellantis’ investments in Ontario encompass the entire EV ecosystem, including EV assembly, next-generation R&D, and battery manufacturing.

• With 30 years of experience in advanced battery technology, LG Energy Solution is a leading global battery manufacturer delivering advanced lithium-ion batteries for electric vehicles mobility & IT applications and energy storage systems.

• Vehicle assembly and auto parts production directly supports nearly 100,000 Ontario jobs, with hundreds of thousands more spin-off jobs in communities across the province.

• Over the past 18 months, the automotive sector in Ontario has seen more than $11 billion in investments for new vehicle production mandates and battery manufacturing, including this one by LGES and Stellantis

• More than $4 billion of these investments are in transformative electric vehicle production at Ontario assembly plants.

• Ontario is building on the growing success of Ontario’s Ivy Charging Network by investing up to $91 million that will add more EV chargers at locations like highway rest stops, carpool parking lots, Ontario Parks, and in community hubs, like hockey arenas and municipal parks.

• In March, the government completed consultations on the designation of three priority proposed electricity transmission lines in the Southwest. If approved, it would expedite the review process so electricity transmission infrastructure could be built sooner.

• In February 2021, Windsor City Council adopted an economic development strategy called Windsor Works – An Economic Development Strategy for the City’s Future Growth focusing on the future of the automotive sector