Can Stellantis' New $4 Billion EV Battery Plant Help Kickstart a New Supply Chain?

Stellantis recently announced that it’s helping to finance a $4 billion EV battery plant, along with help from LG Energy Solutions. Find out how this massive new facility could help kickstart the North American automotive supply chain.
Written by Jason Crosby
Reviewed by Kathleen Flear
Apr 28, 2022
The largest automotive investment deal to ever go down on Canadian soil just happened. A $3.96 billion
EV
battery-building plant has been championed by
Stellantis
(owner of Chrysler, Fiat, Jeep, and Dodge), as the company hopes to expand on its EV lineup for multiple vehicle models. 
This new project could also help develop a new supply chain, which is important, considering the delays and
trucker convoy hold-ups
that much of North America has been experiencing for more than a year. 

Stellantis’ new EV battery plant is massive

As
Crane's Detroit Business
highlights, Stellantis isn’t paying for the whole facility, only 49%.  LG Energy Solutions, on the other hand, is pitching in a little bit more at 51%. Regardless, the new battery-building plant could regenerate Canada and the U.S.’s beleaguered supply chain, which has affected everything from micro-chip availability to new and used car prices. 
The new building will create over 3,000 jobs and is set to be one of the largest battery production facilities in North America, at 4.5 million square feet. Though battery technology is continuing to change, affecting production speed, the plant is expected to produce around 450,000 battery packs per year. Batteries produced by the plant are expected to hit markets sometime in the summer of 2024.

Why did Stellantis and LG invest in this new facility?

Stellantis expects slightly more than half of their vehicles on the market to be fully electric by the year 2030, which means that the Dodge, Fiat, Jeep, and Chrysler vehicles (among many other brands) that the Netherlands-based car company plans to produce will need batteries. Lots of them. 
Stellantis isn’t the only company that’s pumping big money into EV-developing technology. Honda, GM, and even the U.S. government have all set their sights on producing EVs. 
Securing the resources available for EV production is essential to ensuring a country or brand’s place in the emerging EV market, which is currently dominated in the U.S. by Tesla. That may not show any signs of stopping either, with one of Tesla’s key graphite producers recently getting a massive loan from the U.S. government to expand their mining operations. 

Will this new battery plant reset the North American Supply Chain? 

It’s too early to know for certain, but the more North America-based mining and EV battery facilities the better. Even though Stellantis and LG Energy are based in foreign countries (LG being a South Korean brand), having their operations close to Canada, the U.S., and Mexico ensures that all three countries will enjoy shorter wait times for EV batteries. 
While a huge amount of batteries are going to be built in North America, according to
DW
, China is still the number one exporter of raw and processed graphite. Graphite is an essential part of EV battery production and is used to create a negatively-charged anode that helps polarize and conduct electric current. 

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