DETROIT – Automaker StellantisLG Energy Solution announced Wednesday that it will invest $4.1 billion to form a joint venture with LG Energy Solution in order to set up Canada’s first major domestic battery production facility.

According to Transatlantic Automaker, construction of the Windsor plant, Ontario, is expected to start later in the year. Operations are planned to commence in the first quarter 2024. Stellantis stated that the plant will be fully functional once it is operational and can produce more than 45 gigawatts per year. It will also create approximately 2,500 jobs.

Automaker plans to build a new plant. to accelerate its EV investmentTo achieve global sales of five million EVs by 2030. This includes sales of all EVs in Europe, and half the North American passenger and light-duty trucks sales.

As automakers attempt to shift to electric cars in this decade, the announcement marks the latest from the gigafactories and battery plant manufacturers. Nearly every major automaker globally has announced such plans, including allocating billions to the production of batteries – the most critical component for such vehicles.

Stellantis – the world’s fourth-largest automaker – was formed in January 2021 by the merger of Fiat Chrysler and France-based Groupe PSA. There are 14 auto brands within the company, including Alfa Romeo Chrysler Dodge Jeep, Fiat Chrysler Dodge and Dodge.