Stellantis plans C$3.6B investment for Canadian operations to accelerate electrification plans
03 May 2022
Stellantis plans to invest $3.6 billion CAD ($2.8 billion USD) to secure the future of its Windsor and Brampton (Ontario) Assembly Plants and to expand its Automotive Research and Development Center (ARDC) to accelerate the company’s move to a sustainable future. This announcement also supports the company’s Dare Forward 2030 strategic plan and its long-term electrification strategy to invest $45 billion CAD ($35 billion USD) through 2025 in electrification and software globally.
The announcement increases the company’s overall investment in Ontario to $8.6 billion CAD (US$6.7 billion) when combined with the Stellantis-LG Energy Solution joint venture battery plant, which will create 2,500 new jobs in the province. It also doubles the investment commitment of $1.5 billion CAD (US$1.2 billion) made during the 2020 contract talks.
The Windsor Assembly Plant will be transformed to support production of a new multi-energy vehicle (MEV) architecture that will provide battery-electric (BEV) capability for multiple models. The plant will have maximum flexibility to adjust production volumes as needed to meet changing market demand over the next decade. Retooling is expected to begin in 2023.
The Brampton Assembly Plant will be retooled and fully modernized, beginning in 2024. When production resumes in 2025, the plant will introduce an all-new, flexible architecture to support the company’s electrification plans.
With this announcement, both Ontario assembly plants are expected to return to three-shift operations in order to support the demand for these new products. The company will announce product allocation at a later date.
The Windsor-based ARDC will expand its talent pool by adding more than 650 engineering jobs in various areas to support Stellantis’ growth in electrification. It will expand North American capability related to the transition to EV with a focus on core technology areas: electrified propulsion systems, including batteries, power electronics, electric machines, motor controls, energy management and embedded software.
The ARDC also will become the first Stellantis battery lab in North America, following the company’s announcement to establish a similar center in Turin, Italy. The Battery Lab will be a technology center for the development and validation of advanced BEV, PHEV and HEV cells, modules and battery packs. This in-house capability will rapidly accelerate Stellantis’ EV performance. The new 100,000-square-foot facility will be added to the existing building with completion expected by the end of 2023.
In March, Stellantis and LG Energy Solution announced the formation of a joint venture company to establish the first large-scale, domestic, electric-vehicle battery manufacturing facility in Windsor to support the company’s electric battery development. With an investment of $5 billion CAD ($4.1 billion USD) and the creation of an estimated 2,500 new jobs, the joint venture company will produce lithium-ion battery cells and modules to meet a significant portion of Stellantis’ vehicle production requirements in North America.