Ontario Secures Largest Auto Investment in Province’s History

MC Ontario Secures Largest Auto Investment 1 400

March 23, 2022

With the support of the Ontario, federal and municipal governments, LG Energy Solution and automaker Stellantis are joining forces to build the province’s first large-scale electric vehicle (EV) battery manufacturing plant.

The joint venture between LG Energy Solution, Ltd. (LGES) and Stellantis N.V. will invest more than CDN $5 billion (USD $4.1 billion) to build a facility in Windsor to manufacture batteries for EVs in Canada, representing the largest automotive manufacturing investment in the history of the province. This historic investment puts Ontario on a path to becoming one of the most vertically integrated automotive jurisdictions in the emerging North American EV market. The battery facility, with a production capacity of 45 gigawatt hours (GWh) that will supply Stellantis plants in the North American market, will employ an estimated 2,500 people. 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 fully operational by 2025.

MC Ontario Secures Largest Auto Investment 4 400

“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 Premier Doug 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.”

This investment will accelerate Ontario’s 10-year vision for the Driving Prosperity ― The Future of Ontario’s Automotive Sector plan. Phase 2 of Driving Prosperity demonstrates the government’s commitment to transform the province’s automotive supply chain to build the cars of the future, including the production of hybrid and fully battery electric vehicles, EV battery and component production, and increasing exports of Ontario-made auto parts and innovations.

Ontario’s top-quality manufacturing talent, clean and competitive electricity, access to investment-ready sites, and commitments to streamline the approvals process continue to make the province a destination for major investments, ensuring that everyone in Ontario benefits from the auto sector’s long-term growth and success. This game-changing investment helps secure the province’s position as a competitive player in the low-carbon economy of the future.

Each component of the battery supply chain plays an important and interconnected role in the production of electric vehicles. Today’s investment will advance the province’s efforts at becoming a globally competitive, vertically integrated EV battery manufacturing jurisdiction.

MC Ontario Secures Largest Auto Investment 5 400

“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,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “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.”

Quick Facts

  • •Stellantis’ investments in Ontario encompass the entire EV ecosystem, including EV assembly, next-generation R&D, and battery manufacturing.
  • •With 30 years of experience in advanced battery technology, LG Energy Solution is a leading global battery manufacturer delivering advanced lithium-ion batteries for electric vehicles mobility & IT applications and energy storage systems.
  • •Vehicle assembly and auto parts production directly supports nearly 100,000 Ontario jobs, with hundreds of thousands more spin-off jobs in communities across the province.
  • •Over the past 18 months, the automotive sector in Ontario has seen more than $11 billion in investments for new vehicle production mandates and battery manufacturing, including this one by LGES and Stellantis.
  • •More than $4 billion of these investments are in transformative electric vehicle production at Ontario assembly plants.
  • •Ontario is building on the growing success of Ontario’s Ivy Charging Network by investing up to $91 million that will add more EV chargers at locations like highway rest stops, carpool parking lots, Ontario Parks, and in community hubs, like hockey arenas and municipal parks.
  • •In March, the government completed consultations on the designation of three priority proposed electricity transmission lines in the Southwest. If approved, it would expedite the review process so electricity transmission infrastructure could be built sooner.
  • •In February 2021, Windsor City Council adopted an economic development strategy called Windsor Works – An Economic Development Strategy for the City’s Future Growth focusing on the future of the automotive sector.

 

Quotes

MC Ontario Secures Largest Auto Investment 6 400

“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 Rt Honourable Justin TrudeauPrime Minister of Canada

MC Ontario Secures Largest Auto Investment 7 400

“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 ChampagneMinister of Innovation, Science and Industry

MC Ontario Secures Largest Auto Investment 8 400

“LG Energy Solution, together with Stellantis and the Canadian and Ontario Governments, are confident they will set a solid foundation in setting up a battery value-chain in the region, speeding up the green energy transition. Through this joint venture, LG Energy Solution will be able to position itself as a critical player in building green energy value chains in the region. Creating a joint venture battery manufacturing company in Canada, recognized as one of the leading nations in renewable energy resources, is key for LG Energy Solution as we aim to power more electric vehicles around the world.”

– Youngsoo KwonCEO of LG Energy Solution

MC Ontario Secures Largest Auto Investment 9 400

“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 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 TavaresCEO of Stellantis

MC Ontario Secures Largest Auto Investment 10 400

“Stellantis is Windsor’s largest employer and has a rich history in this community. Chrysler began operations in this community in 1925 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 DilkensMayor of Windsor

MC Ontario Secures Largest Auto Investment 11 400

 

 

Source

 

Related Articles

  • Humber College Receives $30 Million Gift from the Barrett Family Foundation

    Humber College Receives $30 Million Gift from the Barrett Family Foundation

    January 27, 2023 Humber College is the recipient of a $30 million gift from the Barrett Family Foundation, marking the largest single donation made to an Ontario college. Combined with their donations to Humber’s Unlimited Campaign, the Barrett Family Foundation has given a total of $42 million, making their donation the largest in Canadian college history…. Read More…


Latest Articles

  • Rotary Encoders for Harsh Environments

    January 30, 2023 Rotary encoders are electromechanical devices that provide feedback on the rotational movement of an axle or shaft. Comprising two parts – a reader and a scale – they typically accomplish this task either by either “absolute encoding” or “incremental encoding”: Absolute encoders measure the precise angular position of the reader relative to… Read More…

  • Energy Technology Perspectives 2023

    Energy Technology Perspectives 2023

    Energy Technology Perspectives 2023 highlights major market and employment opportunities, as well as the emerging risks, for countries racing to lead the clean energy industries of today and tomorrow. The energy world is at the dawn of a new industrial age – the age of clean energy technology manufacturing – that is creating major new markets and millions of jobs but also raising new risks, prompting countries across the globe to devise industrial strategies to secure their place in the new global energy economy, according to a major new IEA report. Read More…


Featured Article

Access Management for Your Plant and Machinery

With PILZ’s “Identification and Access Management” portfolio, they offer you a comprehensive range of products, solutions and software for the implementation of safety as well as security tasks. Below you’ll discover more about potential applications, from simple authentication to complex access permissions, and access management through to safe operating mode selection, maintenance safeguarding and safeguarding of data and networks. Experience safety and security in one system!

This solution ensures that a machine cannot resume operation while people are still in the danger zone. The maintenance safeguarding system “key-in-pocket” is designed for machines with danger zones, which are protected by a safety fence and which staff need to access – robot cells for example. In comparison with conventional lockout-tagout (LOTO) systems, maintenance safeguarding with the key-in-pocket solution is implemented via RFID keys with corresponding permissions and a safe list in the PILZ controllers. As a result, it provides a purely electronic restart protection and makes both mechanical interlocking devices and warning tags redundant.

Read more


Products

  • The One Stop Shop for Industrial Sensors

    January 30, 2023 POSITAL understands how frustrating and costly it can be when your operations are standing still because of a broken encoder. They are here to help! The new webshop of POSITAL aims to make it easier for purchasers or MRO customers to get the parts they need to keep their machines running and… Read More…

  • New Schmalz End-of-Arm Tooling Components from AutomationDirect

    January 30, 2023 AutomationDirect now offers end-of-arm tooling components for robot arm vacuum pick-and-place applications. Components can be purchased individually or in kits that include everything needed to create a single-beam or dual-beam end-of-arm tool. End-of-arm tooling components for vacuum pick-and-place systems are used to create tooling that connects to the end of a robot… Read More…