Stellantis, LG Energy Pick Ontario for Battery Plant
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Stellantis NV and LG Energy Solution will build their new battery plant in Ontario, according to a person familiar with the matter, with an official announcement likely 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.
Stellantis and LG Energy 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% 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.
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A spokesperson for LG Energy said there wasn’t information to share as yet. Representatives for Stellantis and the Canadian embassy in Seoul didn’t immediately respond to requests for 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.”
There have been a rash of tie-ups and arrangements between automakers and battery manufacturers in recent months.
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, while 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.
In September, Ford Motor Co. and Korea’s SK Innovation Co. announced plans to spend $11.4 billion constructing an assembly plant and three battery factories in Tennessee and Kentucky.
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