LG Energy Solution, Stellantis, and NextStar Energy have jointly announced a significant restructuring of their partnership, confirming that LG Energy Solution will acquire full ownership of NextStar Energy. Under the agreement, Stellantis will divest its 49 percent equity stake, transferring complete control of the Canadian battery manufacturer to LG Energy Solution. The move marks a strategic realignment for all parties involved and signals a new phase in the evolution of Canada’s battery manufacturing ecosystem.
NextStar Energy was formed in 2022 as a joint venture between LG Energy Solution and Stellantis with the objective of establishing Canada’s first large-scale lithium-ion battery manufacturing facility in Windsor, Ontario. Since its inception, the venture has played a pivotal role in advancing Canada’s ambitions to become a global leader in clean energy manufacturing and electric vehicle (EV) supply chains. With this transition, the company will continue its mission under a simplified ownership structure designed to enhance agility, scalability, and long-term competitiveness.
A Mutually Agreed Strategic Transition
The ownership change has been described by all parties as a mutually agreed strategic decision, shaped by extensive collaboration between LG Energy Solution, Stellantis, and the leadership team at NextStar Energy. The discussions were guided by a shared objective: ensuring operational continuity while strengthening the company’s long-term growth prospects amid rapidly evolving global battery markets.
By consolidating ownership under a single strategic operator, the partners aim to streamline governance, accelerate decision-making, and position NextStar Energy to respond more effectively to market dynamics. The transition is expected to be executed seamlessly, subject to customary regulatory approvals and closing conditions.
Importantly, Stellantis will remain a long-term customer of NextStar Energy, continuing to source battery products from the Windsor facility to support its expanding electric vehicle portfolio across North America.
Strengthening Canada’s Battery Manufacturing Foundation
The Windsor facility stands as a cornerstone of Canada’s advanced manufacturing and clean-energy strategy. It anchors domestic battery cell production, reduces reliance on offshore supply chains, and enhances North America’s resilience in a sector increasingly viewed as critical to economic and national security.
To date, more than CAD 5 billion has been invested in the construction, equipment, and commissioning of the plant. The facility currently employs over 1,300 workers, with a long-term target of 2,500 employees once full-scale production is achieved. These jobs span advanced manufacturing, engineering, quality control, and technical operations, contributing high-value employment to Ontario’s industrial base.
Beyond direct employment, NextStar Energy has also catalyzed broader economic activity by supporting suppliers, logistics providers, construction firms, and technology partners throughout the region.
Leveraging LG Energy Solution’s Global Expertise
Under full ownership, NextStar Energy will increasingly leverage LG Energy Solution’s global technological leadership and operational expertise. As one of the world’s largest battery manufacturers, LG Energy Solution brings extensive experience across multiple battery chemistries, formats, and applications, ranging from automotive to grid-scale energy storage.
This expertise will enable NextStar Energy to serve a broader and more diversified customer base, including the rapidly growing Energy Storage System (ESS) market, which is emerging as a key driver of battery demand worldwide. By expanding beyond a single-customer focus, the company is expected to improve capacity utilization, reduce business risk, and unlock new growth opportunities.
The new ownership structure also allows for greater flexibility in reallocating production capacity between EV batteries and ESS products, depending on market conditions. This adaptability is becoming increasingly important as battery demand patterns evolve in response to energy transition policies, renewable energy deployment, and grid modernization efforts.
Stellantis’ Continued Commitment to Electrification
While Stellantis is divesting its equity stake, the automaker remains deeply committed to the Windsor facility and to its broader electrification strategy in North America. The company has reaffirmed that it will continue sourcing battery products from NextStar Energy, ensuring supply continuity for its electric vehicle programs.
For Stellantis, the transaction offers a pragmatic balance between securing long-term battery supply and maintaining financial and operational flexibility. By enabling LG Energy Solution to fully leverage the plant’s capacity, Stellantis strengthens the facility’s long-term viability while ensuring that its own EV roadmap remains supported by a stable, North American-based battery partner.
The move aligns with Stellantis’ global strategy to collaborate with leading battery specialists while focusing internal resources on vehicle platforms, software, and customer-facing innovation.
A Pillar of North America’s Battery Supply Chain
NextStar Energy plays a critical role in onshoring battery manufacturing capabilities that are essential to the competitiveness of the North American automotive sector. As governments and OEMs seek to reduce supply chain vulnerabilities and meet local content requirements, facilities like Windsor are becoming central to regional industrial strategies.
By localizing battery production, NextStar Energy supports shorter supply chains, reduced transportation emissions, and closer integration with vehicle assembly plants. This localization also enhances responsiveness to customer needs and regulatory changes, particularly as governments introduce incentives and requirements tied to domestic manufacturing.
The facility’s importance extends beyond automotive applications. Its growing engagement with the ESS sector positions it as a strategic asset for supporting renewable energy integration, grid resilience, and energy security across Canada and the United States.
Leadership Perspectives on the Transition
Senior leaders from all three organizations emphasized the long-term strategic rationale behind the ownership change.
David Kim, Chief Executive Officer of LG Energy Solution, highlighted North America as a key growth market for the company. He noted that situating a major production hub in Canada creates significant opportunities to support both electric mobility and stationary energy storage demand. According to Kim, full ownership of NextStar Energy will allow LG Energy Solution to respond more swiftly to evolving market needs while securing additional North American customers.
Antonio Filosa, Chief Executive Officer of Stellantis, described the move as a smart and forward-looking decision that strengthens the Windsor facility’s long-term prospects. He emphasized that enabling LG Energy Solution to fully utilize the plant’s capacity supports Stellantis’ customers, Canadian operations, and global electrification roadmap.
Danies Lee, Chief Executive Officer of NextStar Energy, underscored the broader national impact of the new ownership structure. He stated that the transition provides long-term certainty for continued investment in Canada’s workforce and manufacturing capabilities, while delivering sustained economic benefits for both Canada and Ontario.
LG Energy Solution’s Expanding North American Footprint
LG Energy Solution already operates the largest and most diverse battery manufacturing footprint in North America, serving multiple customers across a wide range of applications. Upon completion of the NextStar Energy acquisition, the company will operate four stand-alone facilities—including operations in Michigan, Arizona, and Ontario—alongside four joint venture facilities across the region.
This diversified footprint allows LG Energy Solution to balance production across customers, chemistries, and end-use sectors, enhancing resilience and operational efficiency. It also positions the company to respond quickly to regional policy developments, customer demand shifts, and technological advancements.
Strategic Rebalancing Toward Energy Storage Systems
As the global battery market continues to expand beyond electric vehicles, LG Energy Solution is actively rebalancing its production portfolio to capture growth in adjacent sectors such as energy storage systems, robotics, urban aerial mobility, and maritime applications.
A key element of this strategy involves reallocating existing production capacity between EV and ESS products, minimizing the need for large new capital investments while maximizing utilization of current manufacturing lines. Through this approach, LG Energy Solution aims to scale its global ESS production capacity to more than 60 GWh, with over 50 GWh concentrated in North America this year.
The Windsor facility, under full LG Energy Solution ownership, is expected to play an increasingly important role in supporting this expansion, reinforcing Canada’s position in the global energy transition.
Source Link:https://www.stellantis.com/en/
