Lion Electric, a Canadian manufacturer of electric trucks and buses, has secured investment to build its own battery manufacturing plant and innovation centre in Quebec.

The company intends to invest approximately $185 million CAD (US$ 148 million) providing an annual production capacity of 5 GWh, sufficient to enable Lion to produce roughly 14,000 medium and heavy-duty vehicles annually.

Lion said the federal and provincial governments are supporting the investment with approximately $100 million CAD/$80 million USD.

Building the lithium-ion cell battery plant will reduce the cost of vehicle manufacturing while ensuring control and optimisation of a key component of its vehicle supply chain, says Lion Electric. The company is targeting a production rate of one battery module every 11 seconds and a full battery pack every 5 minutes. The factory is expected to begin operations in early 2023.