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Stellantis and LG revealed today they have formed a joint partnership for the production of a new lithium-ion battery plant in Windsor, ON. With a joint investment of $5 billion, the new plant will be the first large scale electric vehicle battery manufacturing facility in Canada. Shovels will hit the ground later this year, and the factory is set to open in 2024.

The plan is that the facility, which will build battery cells and components, will produce 45 gigawatt hours (GWh) annually and, in good news for the Windsor area, around 2,500 new jobs will be created.

“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 per cent of battery electric vehicle sales in the US and Canada by the end of the decade,” said Carlos Tavares, Stellantis CEO. “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.”

Read more: New Jeep SUV highlights Stellantis plans for an electric future

Windsor is home to the largest centre of automotive manufacturing in Canada – both Stellantis and Ford have manufacturing plants there, with many other auto parts makers in the region. It’s also strategically placed close to the border with Detroit and its automotive sector.

Ontario Premier Doug Ford is confident this new factory will entice other battery and EV companies to set up shop in Ontario. “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,” said Ford. “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.”

Earlier this month, Stellantis announced its ‘Dare Forward 2030’ plan, which outlined the company’s EV strategy. It plans to have global annual battery electric vehicle sales of five million vehicles by 2030, with all sales in Europe and half of those in North America fully electrified.

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