LG Energy Solution acquires NextStar Energy, ends Stellantis battery JV in Canada

On February 6, LG Energy Solution acquires NextStar Energy by purchasing Stellantis’ 49% equity stake, bringing an end to the joint venture structure established in 2022. The partnership was originally formed to develop Canada’s first large-scale battery manufacturing facility in Windsor, Ontario, marking a significant milestone for the country’s EV supply chain.
The decision reflects a mutual and strategic agreement between LG Energy Solution and Stellantis, guided by NextStar Energy’s leadership to ensure continuity in operations and long-term stability. While ownership changes, Stellantis will continue as a key customer and maintain battery sourcing arrangements with NextStar Energy under the new structure.

Ownership transition and strategic rationale

A Stellantis spokesperson confirmed that the stake was sold for a nominal fee in exchange for undisclosed favorable benefits, with the transaction remaining subject to standard conditions and regulatory approvals. The shift allows LG Energy Solution to directly steer NextStar Energy’s growth strategy and operational priorities. The Canadian federal government has previously committed production subsidies of up to CAD 10 billion to the project, complemented by approximately CAD 5 billion in support from the Ontario provincial government. These incentives underscore the strategic importance of the facility within Canada’s broader electrification and industrial policy goals.

Expansion beyond Stellantis under LG Energy Solution

Under full ownership, NextStar Energy is expected to leverage LG Energy Solution’s global manufacturing expertise and technology portfolio to broaden its customer reach. This includes supplying batteries not only to Stellantis but also to other OEM EV customers and the growing energy storage system market.

Workforce, production, and investment outlook

The Unifor labor union stated that Local 444 members at NextStar will continue working under the terms of their existing collective agreement, which is set to expire in July this year. At the same time, the union has called on Stellantis to address what it describes as outstanding obligations to workers at its idled Brampton Assembly Plant. NextStar Energy began producing batteries for energy storage systems in fall 2025, while preserving EV battery manufacturing capability after demand projections fell short of earlier expectations. To date, more than CAD 5 billion has been invested in the Windsor facility, which currently employs over 1,300 people and is targeting a workforce of 2,500 employees as it ramps up to full-scale production.