LG Energy Solution to set up EV battery JV with Stellantis in Canada

[SEOUL] South Korean battery giant LG Energy Solution (LGES) said on Wednesday (Mar 23) it plans to invest US$1.5 billion to set up a joint venture with Stellantis in Canada.

LGES owns 51 per cent of the joint venture, tentatively named "LGES-STLA JV" and Stellantis owns 49 per cent, LGES said in a regulatory filing.

In October, LGES and Stellantis struck an electric vehicle (EV) battery production joint venture, targeting to start production by the first quarter of 2024 and aiming to have an annual production capacity of 40 GWh of batteries.

In a separate regulatory filing, LGES said it plans to acquire a stake worth US$542 million in ES America to respond to demand from EV startups in the United States.

LGES is considering building a factory in Arizona to meet demand in the United States, 2 people familiar with the matter told Reuters, adding that the plant is expected to primarily produce cylindrical battery cells.

LGES has its own factory in Michigan and 2 battery joint ventures with General Motors in Ohio and Tennessee.

"We are considering a new production site, but nothing has been decided yet," said a spokesperson at LGES.

LGES, which counts Tesla, GM and Volkswagen among its customers, currently has battery production sites in the United States, China, Poland, Indonesia and South Korea. REUTERS