Windsor could lose LG Chem plant due to electricity supply issues

AM800-News-LG Chem

Windsor's mayor says "all hands are on deck" to make sure the region can land a proposed $2.5-billion LG Chem plant.

Windsor-Essex is in danger of losing out on being home to the plant due to energy issues.

LG Chem is searching for a location to establish a plant to supply the nearly $5 billion electric vehicle battery plant to be built in Windsor, a partnership between LG Energy Solutions and Stellantis.

However, the electricity supply needed for the plant by 2024 will not be available until 2025.

Dilkens says they're working to land that deal but some things are out of their control.

"When it comes to power supply, that's is not in our control to be able to solve those types of issues," he says. "Certainly we are advocating very strongly to make sure we have the right power at the right time in this region. We know until 2025, there will be challenges to bring a huge plant like that online."

The Ontario government announced plans in April to build several new transmission lines, including a new line between Chatham and Lakeshore, to meet electricity needs across the region. However, the new lines are not expected to be online until 2025.

Dilkens says he thinks the transmission line set to start in 2025 will be enough to power the needs of LG Chem.

"To me it's not an issue that can't be resolved by 2025, the problem is can it be ready by 2024? From what we're told, the power can't be delivered here for 2024," he told AM800's The Morning Drive.

Dilkens says we also have a natural gas power plant at Brighton Beach, but it does not produce green energy.

"It is still an opportunity to help fuel the overall system, if it's need in the short term. Again, it's not easy to turn the switch on and make it happen. Everyone is looking at how we can satisfy the power needs in the region and that's one option we have," he adds.