LG Energy Solution will acquire full ownership of NextStar Energy after Stellantis agreed to sell its 49% equity stake, the companies said on Friday, reshaping the ownership of Canada’s first large-scale battery manufacturing facility.
NextStar Energy was formed in 2022 as a joint venture between LG Energy Solution and Stellantis to build a battery plant in Windsor, Ontario, a project positioned as a cornerstone of Canada’s clean-energy and advanced manufacturing ambitions. The companies said the ownership transition was a mutually agreed strategic decision, following extensive discussions with NextStar Energy’s management to ensure operational continuity and long-term growth.
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Under the new structure, NextStar Energy will operate as a wholly owned subsidiary of LG Energy Solution. The battery maker said full control will allow it to better leverage its technology and global manufacturing expertise, expand its customer base beyond automotive applications and respond more flexibly to market demand, including opportunities in the energy storage system (ESS) sector.
“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,” said David Kim, chief executive of LG Energy Solution.
See also: NextStar Energy Completes Construction of Ontario Battery Plant, Prepares for Cell Production
Stellantis said it would remain a committed customer of NextStar Energy and continue sourcing battery products from the Windsor facility, which is expected to support the group’s electric vehicle production in North America.
“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,” said Antonio Filosa, chief executive of Stellantis.
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More than C$5 billion ($3.7 billion) has been invested in the Windsor plant to date. The facility currently employs over 1,300 workers and is targeting a workforce of around 2,500 as it ramps up to full production, the companies said. The site is viewed as a key pillar in efforts to onshore battery manufacturing and reinforce the North American supply chain.
“This new ownership structure strengthens Canada’s position as a leader in battery manufacturing,” said Danies Lee, chief executive of NextStar Energy. “It provides long-term certainty to continue investing in our Canadian workforce and manufacturing capacity.”
