Lion Electric suspends work in Illinois

A LionC all-electric school bus is shown parked at Lion Electric’s factory near Joliet, Ill. (Photo: Lion Electric)

In July 2023, the Lion Electric Co. celebrated the opening of its 900,000 sq.ft. factory in Channahon, Ill., during a day-long event organized for dignitaries, customers, financial analysts, partners and team members, including Illinois Governor J.B. Pritzker. The plant was said to be the largest all-electric plant dedicated to medium and heavy-duty commercial vehicle production in the United States.

Now, the Québec, Canada-based battery-electric vehicle manufacturer has suspended manufacturing operations at the facility near Joliet as part of a company-wide workforce reduction. Temporary layoffs will involve approximately 400 employees in Canada and the United States, across all departments within the organization. Following this workforce reduction, the company said it will have approximately 300 employees who will focus on bus manufacturing, sales and delivery operations as well as assisting customers with the maintenance of vehicles on the road. 

The Lion Electric Co. also reached a definitive agreement with Aéroport de Montreal to sell its innovation center facility in Mirabel, Québec, for $50,000,000 Canadian, subject to customary purchase price adjustments and closing conditions. The company said all of the net proceeds from the transaction were to be used toward the partial repayment of the company’s senior secured non-convertible debentures issued in July 2023. As a result, while the transaction is expected to reduce the company’s long-term indebtedness, it will not impact its short term liquidity and cash position. Closing of the transaction is expected to occur before the end of 2024.

Inaugurated in April 2023, the 175,000 sq. ft. facility located at the YMX International Aerocity cargo airport in suburban Montreal was to be the home to Lion Electric’s battery packs for its LionC and LionD school buses and Lion5 trucks. Those vehicles were assembled at its Illinois and Saint-Jérôme, Quebec factories; the latter plant remains open.

Production of the company’s first battery pack was completed in the Mirabel plant in late 2022. At the time, the company said the facility would ramp up to an annual production capacity of 5 gigawatt hours, enough to electrify approximately 14,000 medium and heavy-duty vehicles per year.

In November the company said more than 2,200 of its vehicles were on the road and it had orders for 1,455 electric buses and 135 electric trucks.