LG Energy Solution Takes Full Ownership of NextStar
LG Energy Solution, Stellantis, and NextStar Energy announced that LG Energy Solution will acquire full ownership of NextStar Energy, with Stellantis selling its 49 per cent equity stake to LG Energy Solution.
LG Energy Solution and Stellantis formed NextStar Energy as a joint venture in 2022 to build Canada’s first large-scale battery manufacturing facility in Windsor, Ontario. NextStar Energy will continue building a resilient and competitive foundation for Canada’s battery future.
LG Energy Solution and Stellantis agreed on the ownership transition as a strategic decision. The two shareholders shaped the decision through extensive engagement with NextStar Energy’s leadership team to support a seamless transition and strengthen the company’s long-term growth and investment outlook.
Under the new ownership structure, NextStar Energy will draw on LG Energy Solution’s technological leadership and global operational expertise to serve a broader customer base, including the Energy Storage System (ESS) industry. NextStar Energy will also respond more quickly to market conditions and demand, enabling it to pursue future growth opportunities across the battery sector.
Stellantis remains a committed customer and will continue to source battery products from NextStar Energy.
NextStar Energy’s Windsor facility stands as a cornerstone of Canada’s advanced manufacturing and clean-energy sector. The facility anchors domestic battery production, strengthens North America’s battery supply chain, and supports Canada’s long-term industrial competitiveness. The partners have invested more than CAD 5 billion in the facility to date. NextStar Energy employs over 1,300 employees and targets 2,500 employees in the long term as it scales to full production.
NextStar Energy will continue to play a pivotal role in strengthening Canada’s and North America’s battery manufacturing ecosystem. The company will onshore critical capabilities to meet the evolving needs of the automotive manufacturing sector and other strategic industries, including electric-vehicle supply chains.
The parties will close the transaction subject to approvals and other conditions.
“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 of LG Energy Solution.
“By enabling LG Energy Solution to leverage the Windsor facility’s capacity fully, 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 of 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 of NextStar Energy