Stellantis N.V. and LG Energy Solution (LGES) announced that they will resume construction of the NextStar Energy battery plant in Windsor, Ontario, marking a significant development for electric vehicle (EV) technology in Canada.
Why it matters: The move follows a binding agreement that meets the terms of the U.S. Inflation Reduction Act (IRA), helping the joint venture meet commitments made by the Canadian government.
This development paves the way for the production of advanced batteries, which is critical to the next generation of electric vehicles.
The Key Points
- Mark Stewart, Stellantis' North America COO, explained that the IRA posed significant challenges to producing competitively priced batteries in Canada. However, through the collaborative efforts of the federal and provincial governments, the issue has been resolved, and construction has resumed.
- The facility's completion aligns with Stellantis' Dare Forward 2030 strategic plan, which envisions a future focused on electrification.
- Dong-Myung Kim, president of LG Energy Solution's Advanced Automotive Battery Division, noted that the agreement marks a significant milestone for the joint venture and Canada. The new plant will be Canada's first considerable battery manufacturing facility.
- According to Danies Lee, CEO of NextStar Energy, the company will now focus on developing advanced batteries made possible by the agreement and the continued support of the Windsor community.
The Big Picture: This joint venture represents an essential aspect of Stellantis' commitment to sustainable development.
The NextStar Energy battery plant will resume construction immediately.
It is expected to begin production in 2024 with an annual production capacity of over 45 gigawatt hours (GWh).