ONTARIO — LG Energy Solution and Stellantis announced that LG Energy Solution will acquire full ownership of NextStar Energy, following Stellantis’ decision to sell its 49 per cent equity stake in the joint venture to its partner.
The transaction reflects a mutually agreed strategic decision by both companies, reached in consultation with NextStar Energy’s leadership team.
The future site of an electric vehicle battery manufacturing plant in Windsor, Ont. Stellantis and LG Energy Solution made the announcement alongside government officials on Wednesday, March 23, 2022. (Rich Garton/CTV Windsor)
NextStar Energy was established in 2022 by LG Energy Solution and Stellantis to develop Canada’s first commercial-scale battery manufacturing facility in Windsor, Ontario. The facility has since become a central pillar of Canada’s emerging battery manufacturing sector and a key contributor to strengthening the North American battery supply chain.
LG Energy Solution said the ownership change will allow the company to more directly align the Windsor facility with its global operations and respond more quickly to evolving market demand, including growth in the energy storage system market.
David Kim, Chief Executive Officer of LG Energy Solution, said full ownership would allow the company to “respond swiftly to the growing demand from the ESS market” while positioning the facility to serve additional North American customers and support Canada’s electric vehicle industry.
Stellantis will remain a long-term customer of NextStar Energy and will continue sourcing battery products from the Windsor facility. Antonio Filosa, Chief Executive Officer of Stellantis, said the decision supports the facility’s long-term viability while securing battery supply for the company’s electric vehicle portfolio, adding that the move aligns with Stellantis’ broader electrification strategy.
Since construction began, more than $5 billion has been invested in the Windsor facility. The site currently employs over 1,300 people and is expected to grow to approximately 2,500 employees as production ramps up. The facility is viewed by both industry and government stakeholders as a cornerstone of Canada’s advanced manufacturing and clean-energy ambitions.
NextStar Energy Chief Executive Officer Danies Lee said the new ownership structure provides long-term certainty for continued investment in Canadian manufacturing capacity and workforce development, while reinforcing Canada’s position in the global battery supply chain.
The transaction remains subject to customary regulatory approvals and closing conditions.
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