Lion Electric announces construction of battery manufacturing plant, innovation center

The Lion Electric Company (Lion), Northern Genesis Acquisition Corp.’s proposed business combination partner, has announced the construction of a battery manufacturing plant and innovation center in Quebec, Canada.

Utilizing cutting-edge technology, the factory is planned to begin operations in early 2023 and will produce battery packs and modules made from Lithium-ion cells. Construction is projected to break ground over the next few months at a location to be confirmed soon.

“Lion is an important player in Quebec and Canada’s ecosystem of electrification of transportation. This factory will allow Lion to integrate a fundamental element to the supply chain of our electric vehicles,” said Lion CEO and Founder Marc Bédard. “Thanks to the financing provided by the federal and provincial governments, we will now be able to manufacture in Canada what we previously imported. Lion, Quebec and Canada will gain from this, both on the economic and environmental fronts, to the great benefit of generations to come.”

The project and its development represent an investment of approximately C$185 million (US$148.35 million) by Lion, who will benefit from support by the federal and provincial governments of approximately which are providing C$50 million each (US$40.1 million). With the construction of the plant, Lion predicts to see a considerable reduction in the cost of its vehicle manufacturing while ensuring control and optimization of a key component of its vehicle supply chain. Given the battery is the most expensive component of an electric vehicle, this new manufacturing capability will have a direct impact on the development of heavy-duty electric transportation while also offering important environmental and economic benefits.

The Prime Minister of Canada, the Right Honorable Justin Trudeau, the Prime Minister of Quebec, François Legault, the Minister of Innovation, Science and Industry, the Honorable François-Philippe Champagne, and the Minister of the Economy and Innovation, Pierre Fitzgibbon, made the announcement, accompanied by Bédard.

“With today’s announcement, we are continuing to take steps to support our Canadian businesses, invest in innovation and protect the environment,” said Prime Minister Trudeau. “It is because of companies like Lion Electric that we are accelerating our transition to a resilient and competitive clean growth economy.”

A milestone for Lion

With a planned yearly production capacity of five gigawatt-hours in battery storage, Lion will be able to electrify approximately 14,000 medium and heavy-duty vehicles annually. The manufacturing plant and innovation center will offer Lion many strategic advantages, including a reduction in its battery system production cost as well as a stable line of procurement of battery packs. Highly automated, Lion’s factory is projected to produce one battery module every 11 seconds and a full battery pack every five minutes. Lion Electric will be the first Canadian manufacturer of medium and heavy-duty vehicles to equip itself with its own automated battery pack manufacturing capability.

Lion’s innovation center will focus on research and development, with the goal of exploring and achieving new advancements in performance, range, energy capacity and the development of innovative products, and will allow the company the flexibility needed to rapidly adapt to emerging technologies.

“In Quebec, we are fortunate to have leaders such as Lion Electric to help build a greener, more durable economy. With its new facilities at the cutting-edge of robotization, the company will be able to increase its productivity and will further its contribution to the growth of our economy,” said Quebec Prime Minister Legault. “In the actual context of economic recovery, this is the type of initiative that can help Quebec differentiate itself in promising sectors, such as that of batteries, and one that my government commits to support.”

Beyond the creation of numerous quality jobs in Quebec – including a projected 135 direct jobs, as well as hundreds more indirect regional jobs – this new facility will become an essential link in a chain of specialized suppliers essential to the electrification of transportation.