LG Energy Solution (LGES) and Stellantis have partnered to open Ontario, Canada’s first major electric vehicle (EV) battery plant. This represents the largest automotive manufacturing investment in the history of the province and the latest sign that the EV revolution has taken hold in Ontario.
The more than $5 billion investment will build a facility to manufacture batteries for EVs in Canada and is expected to be fully operational by 2025. The facility will produce batteries to equip hundreds of thousands of EVs per year for the North American market.
“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”, says Younsoo Kwon, CEO of LGES. “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.”
Carlos Tavares, CEO of Stellantis, agrees with that sentiment.
“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 per cent of battery electric vehicle sales in the U.S. and Canada by the end of the decade”, he said. “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.”
Ontario’s incredible automotive and manufacturing ecosystem makes it an ideal location for battery manufacturers to grow their business. Home to five automakers, Ontario is the 2nd largest vehicle producing jurisdiction in North America and strategically located with access to 30 assembly plants within a day’s drive. As a manufacturing powerhouse, Ontario has a premier talent pool that offers a best-in-class workforce at rates up to 30% more competitive than our North American peers.
Moreover, Ontario’s automotive industry is ready-made for complete vertical integration. In addition to an abundance of raw materials needed to build EV batteries – including nickel, cobalt, lithium and graphite – Ontario is home to world class mining, chemical, and automotive companies that can form part of an end-to-end supply chain.
Through a Comprehensive Electricity Plan, the province also provides large industrial and commercial employers with 15-17% average savings on their electricity bills. On top of Ontario’s energy mix being 94% emissions free, the province has created Clean Energy Credits, positioning the province as a top location for those investors seeking a green energy footprint.
Ontario has a 100-year history of building cars, and this monumental investment solidifies the province’s place as a leader in the new electrification era.