Investment of 4.8 Trillion Won... Mass Production Starts in 2024
Full-Scale Introduction of Smart Factory Related Systems
Kim Dong-myeong, Vice President and Head of the Automotive Battery Division at LG Energy Solution (right), is taking a commemorative photo with Mark Stewart, Chief Operating Officer (COO) of Stellantis, at the investment announcement event for the 'LG Energy Solution-Stellantis Joint Venture Plant' held on the 23rd (local time) in Windsor, Ontario.
[Asia Economy Reporter Oh Hyung-gil] LG Energy Solution is building an electric vehicle battery joint venture factory in Canada together with Stellantis.
On the 23rd (local time), the two companies held an investment announcement event with the Canadian government in Windsor, Ontario, Canada, and revealed plans to establish the joint venture factory.
The event was attended by Fran?ois-Philippe Champagne, Canadian Minister of Innovation, Science and Industry; Mark Stewart, Chief Operating Officer (COO) of Stellantis; and Kim Dong-myung, Vice President and Head of the Automotive Battery Division at LG Energy Solution.
Canadian Prime Minister Justin Trudeau sent a congratulatory message via video, stating, "This partnership will create thousands of new jobs and play a very important role in building an environmentally friendly environment and economy in Canada for future generations."
The total investment amount is 4.8 trillion KRW, with construction starting in the second half of this year and mass production planned to begin in the first half of 2024. The production capacity of the new factory is expected to be 45GWh by 2026. The two companies will build not only battery cell production lines but also module production lines.
The production volume will be used in next-generation electric vehicles launched by Stellantis’ brands such as Chrysler and Jeep. The two companies expect the joint venture factory to grow into a key base for expanding LG Energy Solution and Stellantis’ influence in the North American electric vehicle and battery market.
Carlos Tavares, CEO of Stellantis, said, "The joint venture with LG Energy Solution is an important stepping stone to achieve our aggressive electrification roadmap, which aims to reach 50% electric vehicle sales in North America by 2030."
LG Energy Solution Vice Chairman Kwon Young-soo said, "We will produce the most competitive products in terms of quality, performance, and cost to supply to our key customer Stellantis. We will strive to ensure that both companies play a leading role in pioneering the future electric vehicle era through the new joint venture factory."
Kim Dong-myeong, Vice President and Head of the Automotive Battery Division at LG Energy Solution (fourth from the right), is taking a commemorative photo related to the LG Energy Solution-Stellantis joint venture factory in Windsor, Ontario, Canada, on the 23rd (local time) with Mark Stewart, Chief Operating Officer (COO) of Stellantis (fourth from the left), Doug Ford, Premier of Ontario, Canada (fifth from the left), and Fran?ois-Philippe Champagne, Canadian Minister of Innovation, Science and Industry (sixth from the left).
LG Energy Solution to Have 200GWh Production Capacity in North America Alone
LG Energy Solution announced that with the investments in the Arizona cylindrical cell independent factory and the joint venture in Ontario, Canada, it will have a large-scale production capacity exceeding 200GWh in North America alone after 2025. A 200GWh capacity is enough to produce 2.5 million high-performance pure electric vehicles capable of driving over 500km on a single charge.
With aggressive investments, the company plans to actively respond to the rapidly growing demand in the North American electric vehicle market and secure a definite market advantage. According to global market research firm IHS, the North American electric vehicle battery market is expected to grow sharply from 46GWh in 2021 to 143GWh in 2023 and 286GWh in 2025, with an average annual growth rate of 58%.
In particular, LG Energy Solution plans to fully introduce the latest smart factory-related systems such as remote support, manufacturing intelligence, and logistics automation at the new factory.
LG Energy Solution has signed a Memorandum of Understanding (MOU) with Siemens, a global leader in smart factory technology based in Germany, to build manufacturing intelligence. Additionally, it has recruited Dr. Byun Kyung-seok, a world-renowned scholar in machine learning, as Chief Digital Officer (CDO) to develop manufacturing intelligence solutions. The smart factory system is also being implemented at the Michigan plant in the U.S. and the Ultium Cells joint venture plants 1 to 3 being constructed with GM.
An LG Energy Solution official said, "Leveraging the operational experience of the Michigan plant in the U.S., which started operations in 2012, we plan to maximize the competitiveness of all North American plants through various support measures such as sharing accumulated mass production know-how with new or joint venture factories and dispatching skilled production personnel."
Kim Dong-myeong, Vice President and Head of the Automotive Battery Division at LG Energy Solution, is making a presentation at the LG Energy Solution-Stellantis joint venture factory investment announcement event held on the 23rd (local time) in Windsor, Ontario.
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