Windsor loses out on $2 billion LG Chem plant due to lack of electricity

The Windsor Essex region in Ontario has lost the opportunity for a $2 billion LG Chem plant, but the reason behind the decision is a bit of a headscratcher.

As per the head of Invest WindsorEssex, the region does not have the amount of electricity needed to power the facility.

Stephen MacKenzie noted that the proposed plant was to bring between 1,000 and 1,500 jobs to the region. However, this move by LG Chem does not affect the recently announced EV battery plant in the region.

Mackenzie said that:

We need to keep fighting for investment, we need the approvals, all players have a role to play, the province has to push for the build out of infrastructure in anticipation of demand and the companies have to build the infrastructure. [LG Chem is] annoyed that something as basic as electricity infrastructure is hindering the further expansion of our automobility cluster. (via CBC)

In April, the Provincial government committed to expanding electricity transmission to the region. The plan will add five new lines to support the manufacturing and greenhouse sectors.

As per the province, three of those lines are streamlined to get through the Ontario Energy Board regulatory process.

Although this expansion secures the megawatts needed for the Stellantis and LG Energy Solutions EV battery plant, it was not enough for LG Chem to commit to Windsor.

There is no word on the new location for LG Chem. But, many suspect it will be across the border in Michigan.

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