South Korean firm LG Energy Solution has completed the acquisition of NextStar Energy from Stellantis, a move that transfers full ownership of the joint venture between the two companies formed in 2022 to establish Canada’s inaugural large-scale battery production facility in Windsor, Ontario. The facility’s focus has shifted from manufacturing batteries primarily for the automotive sector to prioritizing power grid storage systems, as officially declared in November.
Stellantis has divested its 49% equity stake in NextStar to LG Energy Solution, stating that the transaction involves undisclosed beneficial terms. Stellantis emphasized its commitment as a loyal customer, continuing to procure battery products from NextStar. Currently, approximately 1,300 individuals are employed at the Windsor plant, with a target of eventually reaching 2,500 staff members.
The Canadian federal government has pledged up to $10 billion in production subsidies for NextStar Energy, with an additional $5 billion contribution from the provincial government. NextStar’s CEO, Danies Lee, expressed that the ownership shift solidifies Canada’s standing as a leader in battery manufacturing, ensuring sustained investment in the local workforce and manufacturing capabilities.
The transition in ownership is not expected to result in any job losses at the Windsor plant, according to Jennifer Cunliffe, spokesperson for Ontario’s Minister of Economic Development, Job Creation, and Trade, Vic Fedeli. The decision received praise from Ontario Premier Doug Ford and federal industry minister Melanie Joly, who highlighted the positive impact on Canada’s automotive sector.
Stellantis also announced a reduction in its electric vehicle initiatives on the same day, causing a significant drop in its Milan-listed shares. Conservative MP Kyle Seeback raised concerns about the divergence between Canadian vehicle manufacturers’ direction and government policies, urging for tax relief to enhance vehicle affordability.
Windsor Mayor Drew Dilkens hailed the ownership change as a sign of LG’s enduring commitment to the region’s manufacturing ecosystem, projecting long-term economic benefits for Windsor-Essex. Stellantis CEO Antonio Filosa acknowledged the strategic move to enhance the Windsor facility’s capacity, ensuring a stable supply of batteries for their electric vehicles and supporting global electrification goals.
Unifor, the union representing Windsor factory workers, expressed optimism about maintaining their labor relations with LG and lauded the company’s adaptability in navigating market changes. The union emphasized the importance of fulfilling obligations to workers at Stellantis’ Brampton Assembly Plant while highlighting the opportunity for NextStar to diversify its offerings and attract new clients.
