LG Energy Solution and Stellantis NV (STLA) are investing $4.1 billion U.S. in a joint venture to build a new electric-vehicle battery plant in Windsor, Ontario.
The 45 gigawatt-hour plant, which is expected to begin operations in 2025, will create 2,500 jobs and supply Stellantis’s assembly plant in Windsor and other manufacturing sites across North America, the companies said in a press release.
LG Energy will invest about $1.5 billion U.S. and own 51% of the joint venture, it disclosed in a regulatory filing. Stellantis will control 49% of the joint venture.
Competition among battery makers to ramp up capacity is intensifying in North America as auto manufacturers including General Motors (GM) and Ford Motor Co. (F) electrify their fleets and U.S. President Joe Biden looks to encourage the technological shift.
As part of its electrification plan, Stellantis is developing five large factories across North America and Europe to produce 400 gigawatt-hours of capacity by 2030.
Stellantis announced last October that it would create a joint venture with Korean battery maker Samsung SDI to build a plant in the U.S. that will be operational by 2025, and eventually have 40 gigawatt hours of capacity.
Stellantis said it will announce the location of a second battery plant to be built in the U.S. in the coming weeks.
