LG New Energy and Stellantis to build battery factory in Ontario, Canada

According to reports, a person familiar with the matter revealed that LG's new energy and automaker Stellantis will build their planned new battery plant in Ontario, Canada, and the two companies may be local time. The official announcement was made on March 23.

The Canadian government's incentives for clean energy companies have helped lure those companies to build factories in the country, people familiar with the matter said. The person requested anonymity because the matter has not been officially made public.

LG New Energy and Stellantis said in October last year that the two companies were planning to build a battery cell manufacturing plant in North America as Stellantis, whose brands include Jeep and Ram among others, is expanding its range of electric vehicle products, aiming to build a battery cell manufacturing plant in North America. Increase the company's electric vehicle sales in the U.S. to 40 percent of total sales by 2030. Construction of the new battery factory will begin next quarter and production is expected to begin in early 2024, the companies said.

A spokesman for LG New Energy said there was no information to share, while a representative for Stellantis declined to comment.

When asked for comment, Ontario's Minister of Economic Development, Job Creation and Trade Vic Fedeli said he "believes the province will have at least one electric vehicle battery manufacturing plant here before the June election. settled”.

In recent months, several automakers and battery makers have collaborated, especially in North America, as governments in North American countries prioritize the shift to clean energy vehicles and infrastructure. The auto industry is in the midst of a historic shift away from internal combustion engines that have been dominated by China and parts of Europe in recent years.

LG's rival in South Korea, Samsung SDI, also signed a memorandum of understanding with Stellantis in October to build a factory in the United States. By the first half of 2025, the plant should have an annual output of around 23 GWh. Separately, according to foreign media reports, Panasonic Corp is in talks about the location of a new U.S. factory that will supply Tesla Inc and potentially other electric vehicle makers.

Last September, U.S. automaker Ford, and South Korea’s SK Innovation also announced plans to spend $11.4 billion to build an assembly plant and three battery plants in Tennessee and Kentucky, respectively.

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