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 in the near future.
The project and its development represent an investment of approximately $150 million (U.S. dollars) by Lion, which will also get about $120 million from federal and provincial governments. 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.
With a planned yearly production capacity of 5gWh 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 5 minutes.
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.
Lion plans to hire 135 people to work at the facility.
Canadian Prime Minister Justin Trudeau said, "We are continuing to take steps to support our Canadian businesses, invest in innovation, and protect the environment. It is because of companies like Lion Electric that we are accelerating our transition to a resilient and competitive clean growth economy."
Lion Founder and CEO Marc Bédard added that, “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."