Climate Finance | March 28, 2022

Stellantis and LG Energy Solution joint venture will invest $4.1 billion in EV batteries

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, March 28 — Billions of dollars have been committed for the advancement of the electric vehicle transition by nearly every major global automaker, including GM, Ford and even Toyota.

A laggard: Stellantis, formed by last year’s merger of Fiat Chrysler and Groupe PSA, which includes brands such as Chrysler, Jeep, Dodge, Ram and Maserati.

To catch up, the Amsterdam-based automaker enlisted LG Energy Solution to set up a large-scale EV battery manufacturing plant in Canada, which is expected to launch operations in 2024.

EV infrastructure

The plant is expected to produce at least 45 gigawatt hours of battery capacity per year and create approximately 2,500 new jobs. It will supply lithium-ion batteries for the five million battery electric vehicles Stellantis is looking to sell by 2030.

LG Energy Solution already had plans to invest around $4.6 billion in EV facilities in North America. Stellantis and LG Energy Solution received support from Canada’s municipal, provincial and federal government officials.

The facility is “an investment in our workers, our communities and our future,” said Justin Trudeau, Canada’s Prime Minister. “Partnerships like these are critical to creating new jobs and putting Canada on the cutting edge of the clean economy.”