Lion Electric has long way to go but plans to grow fast

The Lion Electric Company has a lot of growing to do before it cranks out 20,000 vehicles a year from a future Joliet manufacturing plant expected to employ 740 workers.

Since 2016, the company has delivered 390 electric trucks and buses, a fraction of the capacity it says will be built into the Joliet plant.

But Lion Electric is expecting growth in the electric vehicle market to accelerate soon, and so does the state of Illinois.

The state will provide $7.9 million in tax credits to Lion Electric for the Joliet plant if the company delivers a minimum of 742 jobs in three years. The plant at 3835 Youngs Road is scheduled to open in the second half of 2022.

“We believe that Illinois is the right place to come if you’re in electric vehicle manufacturing. We wanted to get that message to Lion Electric,” Gov. JB Pritzker said when he was in Joliet on Friday for the announcement of the future plant.

Pritzker, emphasizing that Illinois is positioning itself for growth in the electric vehicle industry, pointed out that the state is establishing two Manufacturing Training Academies that would include programs for the electric vehicle industry.

“We’re going to be able to supply you with the labor that you need for many years to come,” Pritzker told Lion Electric representatives at the Joliet event.

The Joliet plant would have eight times the production capacity of Lion Electric’s existing manufacturing facility in Montreal, which has the capacity to produce 2,500 vehicles a year. The Canadian-based company now employs about 500 workers.

“We are ramping up capacity in the U.S. to meet anticipated demand,” Lion Electric spokesman Brian Alexander said.

The Joliet factory will be set up for production of up to 20,000 vehicles upon opening, Alexander said. Actual production and the number of employees will depend on demand at the time.

“We would like to be at full capacity as soon as possible and are optimistic about market conditions which will get us there,” Alexander said.

The company in recent months announced its biggest orders to date, a reflection of growing demand for electric vehicles.

Lion Electric in March announced a deal to deliver 100 trucks to Pride Group Enterprises, a Canadian truck leasing company, doubling its previous largest order to supply CN with 50 trucks for use at intermodal facilities.

Lion Electric also has been building a presence in California, where it has set up a U.S. office and has begun supplying buses to school districts as the state provides incentives to switch to electric school buses.