The rumors about a new battery gigafactory in Canada appear to be true, as LG Chem's LG Energy Solution (LGES) revealed a few details in a regulatory filing.
According to info (via Reuters and Bloomberg), the South Korean manufacturer will create in Canada a battery joint venture, tentatively named "LGES-STLA JV", together with Stellantis. The two announced such an intention in October 2021.
LGES says that it plans to invest $1.5 billion in the project and own 51% of the joint venture, while the remaining 49% would be owned by Stellantis.
The latest report does not say whether the plant will be built in Windsor-Essex County, Ontario (near Stellantis' Windsor Assembly Plant), but we can expect a full announcement soon.
Another question is whether the battery cell output of 40 GWh/year, hinted at in October, is still the case. The original announcement said that the production would start in the first quarter of 2024, so within two years from now.
More investments
According to the latest reports, LG Energy Solution intends to expand its own battery manufacturing capacity in the US, including the plant in Michigan as well as potentially build a new plant in Arizona.
"LGES is considering building a factory in Arizona to meet demand in the United States, two people familiar with the matter told Reuters, adding that the plant is expected to primarily produce cylindrical battery cells."
Cylindrical battery cells (without any info about the exact format) in Arizona might suggest Lucid, which actually is using LGES batteries (the 2170-type format).
Cylindrical cells could also be Tesla's 4680-type cylindrical cells, but we are not so sure whether that's the case and whether or not LGES is technologically ready to build the plant.
One thing is sure, with a few Ultium Cells projects with GM, and a new joint venture with Stellantis, as well as its own plants, the South Korean company is investing a lot to quickly expand the scale of EV battery production in North America.
