Stellantis, LG Energy pick Ontario for battery plant

[TORONTO] LG Energy Solution and Stellantis will build their new planned battery plant in Ontario, Canada, according to a person familiar with the matter, with an official announcement likely on Mar 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.

LG Energy and Stellantis 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 US EV sales to 40 per cent 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.

A spokesperson for LG Energy said there wasn't any information to share as yet, while a representative for Stellantis had no 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".

Ontario's next provincial election is expected to be held in June.

There have been a rash of tie-ups and arrangements between automakers and battery manufacturers in recent months, particularly in North America as governments there - including US President Joe Biden's administration - prioritise the pivot toward clean energy vehicles and infrastructure. The auto industry is in the midst of a historical shift away from the combustion engine, a pivot that has been dominated in recent years by China and parts of Europe.

LG's South Korean rival Samsung SDI signed a memorandum of understanding with Stellantis in October to construct a plant in the US that should have an annual output of around 23 gigawatts (GW) hours by the first half of 2025. Meanwhile, Panasonic is engaged in talks over the site for a new US factory that would supply Tesla and potentially other EV manufacturers, Bloomberg News has reported.

In September, Ford Motor and Korea's SK Innovation announced plans to spend US$11.4 billion constructing an assembly plant and 3 battery factories in Tennessee and Kentucky. BLOOMBERG