Stellantis, LG Energy Solution Resume Gigafactory Construction in Canada

What’s Happening

NextStar Energy, the innovative joint venture between automotive giant Stellantis N.V. and global leader in energy solutions LG Energy Solution (LGES), announced that they have signed a definitive agreement to resume the construction of Canada’s premier large-scale electric vehicle (EV) battery plant in Windsor, Ontario. This move follows the commitment from the Canadian government to level the playing field with the U.S. Inflation Reduction Act (IRA).

Why It Matters

The reinstatement of the project, slated for production operations launch in 2024, symbolizes a significant milestone in the evolution of the North American battery production landscape. As Mark Stewart, Stellantis Chief Operating Officer North America, explained, the IRA had altered the terrain of battery production, making it challenging to competitively manufacture state-of-the-art batteries in Canada without equivalent governmental support.

Key Points

The groundbreaking agreement has enabled the resumption of the construction of the Windsor battery plant, with an expected annual production capacity of over 45 gigawatt hours (GWh). Stellantis and LGES jointly appreciate the support and leadership shown by the federal and provincial governments in reaching this deal. Furthermore, Stellantis has demonstrated its commitment to the ongoing electrification transformation and Canada’s role in the global EV ecosystem through substantial investments in the Automotive Research and Development Centre Battery Lab, Windsor Assembly Plant, and Brampton Assembly Plant.

Bottom Line

This commitment to the NextStar Energy project, the first of its kind in Canada, not only positions Stellantis and LGES at the forefront of the rapidly expanding EV market but also underlines their determination to promote sustainable development. With immediate effect, construction at the NextStar Energy battery plant is set to resume, promising to create an estimated 2,500 new jobs in Windsor and surrounding areas, and bolstering Canada’s position as a key player in the burgeoning global EV sector.


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