LG Energy Solution and U.S. Nextstar Energy, in partnership with automaker Stellantis, have reached an agreement with the Canadian government regarding the conditions for subsidizing battery production.
The long-awaited contract was signed on July 6, securing a stable future for battery cell and module production in Ontario, Canada. In line with the agreement, the Canadian government has committed to providing subsidies equivalent to the US Inflation Reduction Act (IRA).
Following the signing of the contract, LG Energy Solution and Stellantis have decided to resume construction of their battery module plant, which had been halted since May 15th. The plant, to be located in Windsor, Ontario, Canada, will have an annual production capacity of 45 GWh and is set to commence operations in 2024. The establishment of the plant is expected to generate approximately 2,500 new job opportunities.
Mark Stewart, the Chief Operating Officer (COO) of Stellantis North America, expressed his gratitude to the federal and provincial governments of Canada, as well as to Unifor, Canada's largest automobile labor union.
"The US IRA has significantly transformed the landscape of battery production in North America and acknowledged the necessity of equivalent support in Canada," said Stewart. "The swift action taken by the Canadian government, in collaboration with the labor union, played a vital role in reaching the contract, leading to the immediate resumption of construction activities."
“Nextstar Energy is one of eight LG Energy Solution production plants in North America that are expected to grow rapidly in the future," said Lee Hoon-seong, the CEO of Nextstar Energy. "We will produce the highest quality batteries in Windsor, Canada, and we will continue to grow together with the local community.”
