Stellantis and LG Energy to pick Ontario for new battery plant
LG Energy Solution and Stellantis NV will build their new planned 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.
LG Energy and Stellantis 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 per cent 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.
A spokesperson for LG Energy said there wasn’t any information to share as yet, while a representative for Stellantis 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.
There have been a rash of tie-ups and arrangements between automakers and battery manufacturers in recent months, particularly in North America as governments there -- including U.S. President Joe Boden’s administration -- prioritize the pivot toward clean energy vehicles and infrastructure. The auto industry is in the midst of an historical shift away from the combustion engine, a pivot that has been dominated in recent years by China and parts of Europe.
LG’s 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. Meanwhile, 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, Bloomberg News has reported.
In September, Ford Motor Co. and Korea’s SK Innovation Co. announced plans to spend US$11.4 billion constructing an assembly plant and three battery factories in Tennessee and Kentucky.