The Stellantis and LG Energy Solution battery plant in Windsor, Ont., will require at least $2 billion in supplier investment to support it, Ontario Minister of Economic Development Vic Fedeli says
GOVERNMENT OF ONTARIO
The new Stellantis and LG Energy Solution EV battery plant in Windsor, Ont., will require billions of dollars of investment by suppliers.
The supply chain investment required to support the new Stellantis and LG Energy Solution (LGES) battery plant in Windsor, Ont., could total at least $2 billion – about half of the $5-billion investment in the cell manufacturing site itself, according to Ontario Minister of Economic Development, Job Creation and Trade Vic Fedeli.
Fedeli wrapped up the South Korean leg of an Asian trade mission Sept. 7, local time, having met with LGES and a trio of potential suppliers of the planned Ontario plant, which is expected to begin producing cells for electric vehicle batteries in 2024.
“There may well be a couple of billion dollars’ worth of ancillary companies that will make components necessary to fulfill the requirements to make batteries in Ontario. It could be $2 or $3 billion in our first blush,” Fedeli told Automotive News Canada. Fedeli would not share what battery component companies he called on during three days of talks in South Korea, but said his team had “very successful initial meetings” with three prospective investors LGES had advised the province to call on prior to the trip. The battery cell maker also provided further leads for the province to pursue during meetings in Seoul.
“We’ve got our work cut out for us now to turn those leads into productive sales calls in the future, and hopefully into additional companies that will locate in Ontario.”
In June, South Korea’s Dongshin Motech Ltd. announced plans to build a $60-million plant in Windsor that will build aluminum casings for batteries built at the nearby Stellantis/LGES plant, which is known officially as NextStar Energy Inc.
Fedeli said the province is working on adding other such suppliers to Ontario’s battery ecosystem, though he had no firm deals to announce as he left Seoul.
“We’re very encouraged by the sales calls we had. We hope that these turn into deals in the coming weeks and months.”
The Ontario government economic development team also met with Samsung SDI Co. during the visit, pitching the province as a destination for investment from the company that makes batteries for both consumer electronics and electric vehicles.
Fedeli did not meet with either Kia or Hyundai as part of the visit.
“We will continue to work with global automakers, but this was really a focus on the electric vehicle battery and components.”
Fedeli flew to Tokyo Sept. 7 and will spend three days meeting with automakers and battery manufacturers before returning to Canada Sept. 10.
Meetings with Honda, Toyota and electronics manufacturer Panasonic are all on the books.(Source:Automotive News Canada)