LG Energy Solution and Stellantis announced they have agreed that LG Energy Solution will acquire full ownership of NextStar Energy, with Stellantis selling its 49% equity stake to its founding joint venture partner.
The companies cited the ownership shift as a mutually agreed strategic decision, undertaken in consultation with NextStar Energy, and said the transaction remains subject to approvals and other customary closing conditions.
NextStar Energy was formed in 2022 as a joint venture between LG Energy Solution and Stellantis to build Canada’s first large-scale battery manufacturing facility in Windsor, Ontario. The companies said the facility is intended to anchor domestic battery production, strengthen North America’s battery supply chain, and support Canada’s advanced manufacturing and clean-energy sector.
The companies said more than C$5 billion has been invested in NextStar Energy to date. They also said the facility currently employs more than 1,300 employees and has a long-term target of 2,500 employees as operations scale to full production.
Under the new ownership structure, NextStar Energy is expected to leverage LG Energy Solution’s technology and global operating capabilities to serve a broader customer base, including the Energy Storage System market, and respond more quickly to shifting market conditions and demand. Stellantis said it will remain a committed customer and continue sourcing battery products from NextStar Energy as part of its electric-vehicle supply strategy.
LG Energy Solution framed the transaction as part of a broader portfolio rebalancing as demand expands beyond electric vehicles into adjacent end markets such as energy storage, robotics, urban aerial mobility and maritime applications. The company said it is reallocating capacity between EV and Energy Storage Systems to maximize utilization of existing production lines and reduce the need for new investments, with a goal of increasing global Energy Storage System production capacity to over 60 GWh this year, including more than 50 GWh concentrated in North America. It also said that, upon completion of the acquisition, it expects to operate four stand-alone facilities and four joint venture facilities in North America, with NextStar Energy included among the stand-alone operations.
KEY QUOTES
“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.”
David Kim, Chief Executive Officer, LG Energy Solution
“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. This is a smart, strategic step that supports our customers, our Canadian operations, and our global electrification roadmap.”
Antonio Filosa, Chief Executive Officer, Stellantis
“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.”
Danies Lee, Chief Executive Officer, NextStar Energy
