LG Energy Solution to set up EV battery JV with Stellantis in Canada
- In October, LGES as well as Stellantis NV struck an electric vehicle (EV) battery manufacturing joint venture
- The JV aims to begin manufacturing by the first quarter of 2024 as well as aiming to have an annual production capacity of around 40 GW of batteries.
South Korean battery titan LG Energy Solution Ltd (LGES) claimed on Wednesday it prepares to spend 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 manufacturing by the very first quarter of 2024 as well as 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 as well as the surrounding areas. Each of the Municipal, Provincial and also Federal levels of the Canadian government have consented to totally sustain the successful procedure of the joint venture company, stated both companies in an official declaration.
In a separate regulatory filing, LG Energy Solution stated it intends to acquire stake worth 662 billion won in ES America to react to demand from EV startups in the USA.
" Our joint venture with LG Energy Solution is yet an additional tipping rock to attaining our aggressive electrification roadmap in the region focused on hitting 50% of battery electric vehicle sales in the United States and Canada by the end of the decade," stated Carlos Tavares, Stellantis Chief Executive Officer.
" We are grateful to the Municipal, Provincial and Federal degrees of government for their assistance and commitment to help position Canada as a North American leader in the production of electric vehicle batteries," Tavares added.
" Via this joint venture, LG Energy Solution will certainly be able to position itself as a critical gamer in building green energy worth chains in the region," claimed Youngsoo Kwon, Chief Executive Officer of LG Energy Solution.
" Creating a joint venture battery making company in Canada, identified as one of the leading nations in renewable resource resources, is key for LG Energy Solution as we aim to power a lot more electric vehicles all over the world."