LG Energy Solution will take full ownership of NextStar Energy. Stellantis is selling its 49% equity stake in Canada’s first large-scale battery manufacturing facility located in Windsor, Ontario. The two companies described the move as a mutually agreed, strategic decision.
Highlights
- LG Energy Solution acquires Stellantis’ 49% stake in NextStar Energy, gaining full ownership of the Windsor, Ontario battery plant.
- More than $5 billion CAD invested in the facility to date, with over 1,300 employees and a target of 2,500 at full production.
- Stellantis remains a customer, continuing to source battery products from NextStar Energy for its electric vehicles.
- LG Energy Solution plans to expand the facility’s customer base into energy storage systems, robotics, and other sectors.
Strategic Rationale for the Ownership Change
NextStar Energy was established as a joint venture by LG Energy Solution and Stellantis in 2022. The decision to transfer full ownership followed extensive engagement with NextStar Energy’s leadership team. The goal is to ensure a seamless transition and strengthen long-term growth.
Under the new structure, NextStar Energy will tap into LG Energy Solution’s global operational expertise. The facility will serve a broader customer base, including the energy storage system (ESS) industry. It will also respond with greater agility to shifting market demand.
Stellantis Maintains Battery Supply Agreement
Stellantis will continue sourcing battery products from NextStar Energy. Antonio Filosa, CEO of Stellantis, said the move supports the company’s electrification plans.
“By enabling LG Energy Solution to fully leverage the Windsor facility’s capacity, we are strengthening its long-term viability while securing the battery supply for our electric vehicles,” Filosa said. “This is a smart, strategic step that supports our customers, our Canadian operations, and our global electrification roadmap.”
Impact on Canada’s Battery Manufacturing Sector
The NextStar Energy facility anchors domestic battery production in Canada. It strengthens North America’s battery supply chain and supports long-term industrial competitiveness. The plant currently employs more than 1,300 workers, with plans to reach 2,500 as production scales up.
Danies Lee, CEO of NextStar Energy, emphasized the benefits for Canadian manufacturing. “This new ownership structure strengthens Canada’s position as a leader in battery manufacturing,” Lee said. “It provides long-term certainty to continue investing in our Canadian workforce and our manufacturing capacity.”
LG Energy Solution’s North American Expansion
LG Energy Solution is the largest battery company in North America. It operates the most diverse manufacturing footprint across multiple customers, chemistries, and formats. Upon completion of this acquisition, the company will operate:
- Four stand-alone facilities: LG Energy Solution Michigan Holland, LG Energy Solution Michigan Lansing, LG Energy Solution Arizona, and NextStar Energy
- Four joint venture facilities across the region
The company is strategically rebalancing its portfolio as the global battery market expands beyond EVs. Key growth areas include ESS, robotics, urban aerial mobility, and marine applications. LG Energy Solution is reallocating production capacity between EV and ESS segments to maximize existing production lines.
The company aims to increase global ESS production capacity to over 60 GWh this year. More than 50 GWh of that capacity will be concentrated in North America.
David Kim, CEO of LG Energy Solution, said the acquisition positions the company for regional growth. “Full ownership of NextStar Energy will enable us to respond swiftly to the growing demand from the ESS market,” Kim said. He added it will help secure additional North American-based customers.
Transaction Details
The closing of this transaction is subject to regulatory approvals and other conditions. Financial terms were not disclosed.
For more information, visit LG Energy Solution, Stellantis, or nextstarenergy.com.
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