By Kwanwoo Jun and Kim Richters

 

Battery maker LG Energy Solution Ltd. and auto maker Stellantis NV have agreed to invest a total of $4.1 billion in a joint venture that will include a large-scale battery manufacturing plant in Windsor, Canada.

"The joint venture company will produce leading edge lithium-ion battery cells and modules to meet a significant portion of Stellantis' vehicle production requirements in North America," Stellantis said Wednesday.

LG Energy will spend $1.464 billion to buy a 51% stake in the joint venture and $637.3 million to guarantee debt and support its credit line, the South Korean electric-vehicle battery maker said in a regulatory filing on Wednesday.

The investment plan follows an initial announcement by LG Energy and Stellantis in October to jointly build an EV battery plant for the North American market. The car maker has also partnered with South Korea's Samsung SDI Co. for a similar EV battery joint-venture project.

Stellantis said production at the plant should begin in the first quarter of 2024, which should have an annual production capacity of more than 45 gigawatt hours and create around 2,500 jobs in Windsor and surrounding areas.

Stellantis set a goal of battery-electric vehicles making up 50% of its passenger car and light-duty truck sales mix in North America by 2030.

 

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com and Kim Richters at kim.richters@wsj.com

 

(END) Dow Jones Newswires

March 23, 2022 12:16 ET (16:16 GMT)

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