Government of Canada welcomes largest investment in Canada’s auto industry with the first large-scale domestic EV battery manufacturing facility
A major milestone that will create thousands of Canadian jobs for the net-zero emission economy of the future
March 23, 2022 – Ottawa, Ontario
The future of Canada’s transportation sector is green. So to create middle-class jobs and position our economy for success in a low-carbon world, the government is bringing major international investments to Canada that will secure a strong electric vehicle (EV) battery supply chain.
Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, the Honourable Doug Ford, Premier of Ontario, and Drew Dilkens, Mayor of Windsor, announced that their governments are welcoming a major investment from LG Energy Solution, one of the leading battery manufacturing companies in the world, and automaker Stellantis N.V. to create a joint venture in Canada. The joint venture will see a total investment of over $5 billion CAD ($4.1 billion USD) in a facility to manufacture batteries for EVs in Canada. This will position Canada as a global leader in the EV manufacturing supply chain. The battery facility will be located in Windsor, Ontario, and will supply Stellantis plants in Windsor and across North America. The facility will be operational by 2025.
The Government of Canada has been working closely with both companies to secure this investment given that the project aligns with the government’s commitment to develop a Canadian battery ecosystem that supports clean technology and industrial transformation. Today’s announcement is yet another step forward. The project is expected to create 2,500 well-paying jobs.
This investment will not only position Canada as a global leader in the production of EV batteries but also support the development of a sustainable domestic battery manufacturing sector in Canada.
“Today’s announcement of a world-leading facility to build electric vehicle batteries in Windsor is an investment in our workers, our communities and our future. Partnerships like these are critical to creating new jobs and putting Canada on the cutting edge of the clean economy. By working together, we are creating thousands of new jobs, making a difference in the lives of people now and making sure that future generations have a clean environment to live in.”
– The Right Honourable Justin Trudeau, Prime Minister of Canada
“Today’s announcement is great news for Canadian jobs and the future of Canada’s economy. We are seeing the largest investment in Canada’s auto sector, and it is clear that companies recognize Canada’s strong position as a global leader for EV battery manufacturing. We will continue to work hard to attract other companies and encourage them to set up shop in Canada to help create jobs, generate economic benefits and contribute to a net-zero emission future.”
– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
“This announcement is a great step forward for Canada’s green and electric future. It shows that we are leading the way to building a robust North American EV battery supply chain, starting right here at home. Not only does this prepare us for a low-carbon future, but it will also create jobs, will generate impactful economic growth, and is a sustainable long-term investment in our communities.”
– The Honourable Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development
“Canada has the opportunity to drive the clean energy future by building up our critical mineral supply chains—from production to processing, and the manufacturing of clean technologies. Today’s announcement will help ensure that we continue to lead the global fight against climate change, and will put more Canadians in the driver’s seat on the road to a net-zero future.”
– The Honourable Jonathan Wilkinson, Minister of Natural Resources
“Through our Driving Prosperity auto plan, strategic investments across our integrated supply chains, and by reducing the cost of doing business in Ontario by nearly $7 billion annually, our government is staking Ontario's claim as a leader in the emerging North American EV battery industry. By harnessing advanced manufacturing processes and emerging technologies, and leveraging the critical mineral wealth in Northern Ontario, our province has what it takes to develop and build the car of the future, and the batteries those cars need.”
- The Honourable Vic Fedeli, Ontario Minister of Economic Development, Job Creation and Trade
“Attracting this multi-billion dollar investment will secure Ontario’s place as a North American hub for building the cars and batteries of the future. As we secure game-changing investments, we’re also connecting resources, industries and workers in northern Ontario with the manufacturing might of southern Ontario to build up home-grown supply chains. Every region of Ontario will benefit with thousands of jobs being created and a stronger economy that works for everyone.”
– The Honourable Doug Ford, Premier of Ontario
“Stellantis is Windsor’s largest employer and has a rich history in this community. Chrysler began operations in this community in 1928 and has employed generations of Windsor–Essex workers at its facility. With this announcement, we are securing the future for thousands more local workers and securing Windsor’s strategic location as the home of Canada’s electric vehicle future. As the world pivots to EVs, Windsor will soon be home to the battery manufacturing facility that powers it all.”
– His Worship Drew Dilkens, Mayor of Windsor
“This announcement demonstrates that Canada can attract global investment in the dynamic, growing EV industry as a result of its unique value proposition for this sector. Invest in Canada worked closely with LGES from the outset of its decision-making process, and all levels of government came together to seize the opportunity—one that will help to create a truly end-to-end battery EV supply chain in Canada.”
– Katie Curran, Interim CEO, Invest in Canada
“LG Energy Solution, together with Canada and Stellantis, aspires to become the world’s leading battery manufacturer by powering EVs in North America. LGES will position itself as a critical player in setting up a battery value chain in the region as we provide solutions to our potential customers through our collective, unique technical skills and mass-producing capabilities. Creating a joint battery manufacturing plant in Canada, one of the leading nations in renewable energy resources, is all the more critical for LG Energy Solution as we aim to power more EVs around the world.”
– Youngsoo Kwon, CEO of LG Energy Solution
“Our joint venture with LG Energy Solution is yet another stepping stone to achieving our aggressive electrification roadmap in the region aimed at hitting 50% of battery electric vehicle sales in the U.S. and Canada by the end of the decade. We are grateful to the municipal, provincial and federal levels of government for their support and commitment to help position Canada as a North American leader in the production of electric vehicle batteries.”
– Carlos Tavares, CEO of Stellantis
LG Energy Solution is a leading global battery manufacturer delivering advanced lithium-ion batteries for electric vehicle, mobility and IT applications and for energy storage systems (ESS). With 30 years of experience in advanced battery technology, LGES is committed to developing innovative technologies that will bring the future of energy a step closer. LG Energy Solution’s robust global network spans across North America, Europe, Asia and Australia, with a 23% share of the global EV battery market.
Stellantis is a leading global automaker and mobility provider that offers clean, connected, affordable and safe mobility solutions. Its ambitious electrification and software strategies and the creation of an innovative ecosystem of strategic, game-changing partnerships are driving its transformation into a sustainable mobility tech company.
In February 2021, Windsor City Council adopted an economic development strategy called Windsor Works: An economic development strategy for the city’s future growth. This plan focused municipal economic development efforts on talent retention, partnerships with academic institutions and the future of the automotive sector—and electric vehicle components in particular. The implementation of Windsor Works is helping make investments like the one by LGES and Stellantis possible through a new department at City Hall focused on attracting investment and creating good jobs in Windsor.
Details of this agreement are subject to commercial confidentiality and cannot be disclosed at this time. More details will follow once due diligence is completed.
Plant construction activities are scheduled to begin later this year, with production operations planned to launch in the first quarter of 2024. The facility will be operational by 2025.
This investment aligns with the Government of Canada’s strengthened climate plan—A Healthy Environment and a Healthy Economy.
The Government of Canada has set a target of achieving 100% zero-emission vehicle (ZEV) sales by 2035. Accelerating the ZEV target will support Canada’s commitment to reach net-zero emissions by 2050 and its pledge at the United Nations 2019 Climate Action Summit.
Senior Manager, Communications
Office of the Minister of Innovation, Science and Industry
Innovation, Science and Economic Development Canada
Sally Seung Yeon Lee
Global Communications Team, LG Energy Solution
+82 2 3773 6571
Ashlee Semin Shin
Global Communications Team, LG Energy Solution
+ 82 2 3773 4381
Global Communications, Stellantis
+31 6 43 25 43 41
North America Communications, Stellantis
Communications Branch, Ontario Ministry of Economic Development, Job Creation and Trade
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