LG Energy Solution has announced it will take full control of Nextstar Energy, a battery joint venture that has created Canada’s first large-scale EV battery factory in Windsor, Ontario.
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Stellantis is selling its 49% equity stake to LG Energy Solution (LGES), but will remain a major customer for the plant.
NextStar Energy was established as a joint venture by the two companies in 2022 to build Canada’s first large-scale battery manufacturing facility.
The ownership transition is a mutually agreed, strategic decision by the joint venture’s two shareholders, LGES and Stellantis. The decision was informed by extensive engagement with NextStar Energy’s leadership team to ensure a seamless transition and strengthen the company’s long-term growth and investment outlook.
Under the new ownership structure, NextStar Energy will leverage LGES’s technological leadership and global operational expertise to better serve a broader customer base, including the Energy Storage System (ESS) industry, and respond with greater agility to market conditions and demand to pursue future growth opportunities.
Stellantis remains a committed customer and will continue to source battery products from NextStar Energy.
LGES describes NextStar Energy’s facility as a cornerstone of Canada’s advanced manufacturing and clean-energy sector, anchoring domestic battery production, strengthening North America’s battery supply chain, and supporting Canada’s long-term industrial competitiveness. More than $5 billion CAD has been invested in the facility to date, and it employs over 1,300 employees, with a long-term target of 2,500 employees as it scales to full production.
LGES says that NextStar Energy will continue to play a pivotal role in strengthening Canada’s and North America’s battery manufacturing ecosystem by onshoring critical capabilities that meet the evolving needs of the automotive manufacturing sector and other strategic industries.
The closing of this transaction is subject to approvals and other conditions.
David Kim, Chief Executive Officer of LG Energy Solution, said: “LG Energy Solution sees growth opportunities in North America by situating a key production hub in Canada. Full ownership of NextStar Energy will enable us to respond swiftly to the growing demand from the ESS market and position us to play a key role in Canada’s EV industry by securing additional North American-based customers.”
Antonio Filosa, Chief Executive Officer of Stellantis, said: “This new ownership structure strengthens Canada’s position as a leader in battery manufacturing. It provides long-term certainty to continue investing in our Canadian workforce and our manufacturing capacity while delivering sustained economic benefits for Canada and Ontario.”
LGES is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems.
