Lion Electric’s medium and heavy electric vehicle battery plant, the first of its kind in Canada, opened its doors in Mirabel on Monday. It will allow the company to better control its production costs, in addition to eliminating its dependence on foreign battery producers for the assembly of its vehicles.
“In all humility, […]we are told that this factory has absolutely nothing to envy to all the major car manufacturers on the planet in terms of battery factories, “said Marc Bédard, president and founder of the Lion company, during a a conference in the factory des Laurentides, in the presence of Economy Minister Pierre Fitzgibbon and Environment Minister Benoit Charette.
“Someone once told me that there are two differences between the Lion factory and the Tesla factory. It’s smaller, but it goes faster,” said Mr. Bédard proudly, in the middle of the 175,000 square foot site, built on the site of the International Aerocity of Mirabel.
Among other things, this new highly automated factory will allow the company to have a better grip on its production costs, while the cost of a battery represents approximately “30% to 40% of the cost of a vehicle”, pointed out Mr. Bédard.
This “vertical integration strategy” will also allow Lion to be more self-sufficient and no longer be “locked in to one supplier for several years”, although it will continue to be dependent on battery cells.
“It’s not to put pressure on you Mr. Fitzgibbon, but when there is a Quebec cell, we will be very happy to use a Quebec cell in the production of our batteries,” added Mr. Bédard, by turning to the Minister of the Economy, who did not lack praise for the company and its participation in the decarbonization of the Quebec economy.
The first battery pack was produced in late 2022, but it will take until product certification – which is expected by the end of June – is achieved for Lion to be able to pass. in production mode and can install its own batteries on its electric buses and trucks.
Poor stock market performance
In response to questions from journalists, the company’s CEO admitted that he was not satisfied with the company’s stock market results, which, however, remain beyond his control, he said, and which reflect a general decline in the electric transport sector on the markets, of which Lion Electric is not the only one to suffer.
Since its IPO in May 2021, Electric Lion’s share price has fallen almost 90% – from roughly $22 to just over $2.
“When we see the stock market declines like at the moment, my fear is not the price [de l’action] said Minister Fitzgibbon. “My fear is: are we vulnerable to an acquisition? And we don’t want to lose Lion. We [suit de proche] the situation with Investissement Québec,” he added, reiterating his confidence in the company and its leader.
Mr. Bédard admitted having been courted, but is determined not to give in and to keep the head office in Quebec. “When there’s a tidal wave like now, it’s always more dangerous [de se faire racheter]. Me, I still control a good part [des actions] and I’m not selling,” insisted the CEO. As for the first shareholder, Power Corporation, “I don’t want to speak for them, but I think things are going well,” said Mr. Bédard.
In March 2021, Quebec and Ottawa injected $100 million – $50 million each – for the construction of this plant. The Quebec portion of the financing is a forgivable loan tied to job creation.
Eventually, 135 jobs should be created in Mirabel, promised Lion. For the moment, only 50 employees work at the plant, which is however only in its second phase of development, out of a total of four.
Once complete, the plant is expected to build a battery every 5 to 10 minutes and will be used to power vehicles assembled by Lion at its plants in St. Jerome, Quebec and Joliet, Illinois.
In a press scrum, Marc Bédard also reacted to an article published last month by Radio-Canada, according to which the Société des alcools du Québec (SAQ) would be disappointed with the Lion8 truck model, which it had to return. “The purchase order was placed in December 2022. And the vehicle was delivered about a month ago. […] It’s normal for a vehicle like this for the vehicle to come back [pour faire des ajustements] “, explained Mr. Bédard, who says he has a very good business relationship with the SAQ.