LG Energy Solution to set up EV battery JV with Stellantis in Canada

South Korean battery giant LG Energy Solution Ltd (LGES) said on Wednesday it plans to invest 1.8 trillion won ($1.48 billion) to set up a joint venture with Stellantis NV in Windsor, Canada.

In October, LGES and Stellantis NV struck an electric vehicle (EV) battery production joint venture, targeting to start production by the first quarter of 2024 and aiming to have an annual production capacity of 40 gigawatt hours of batteries.

The plant in Windsor is expected to 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, said the two companies in an official statement.

In a separate regulatory filing, LG Energy Solution said it plans to acquire stake worth 662 billion won in ES America to respond to demand from EV startups in the United States.

“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,” Tavares added.

“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.

“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.”