LG Energy Solution to take full ownership of NextStar Energy
LG Energy Solution will acquire full ownership of NextStar Energy, with Stellantis selling its 49% stake in the Canadian battery joint venture. The decision follows a mutually agreed strategic plan between the two companies, in consultation with NextStar Energy’s leadership.
NextStar Energy was founded in 2022 to build Canada’s first commercial-scale battery manufacturing facility in Windsor, Ontario. More than CAD 5 billion has been invested in the plant to date, and it currently employs over 1,300 people, with a long-term target of 2,500 as production ramps up.
Under LG Energy Solution’s sole ownership, NextStar Energy will leverage the company’s technological and operational capabilities to serve a broader customer base, including the Energy Storage System (ESS) sector, and respond with greater agility to market demand. Stellantis will remain a customer and continue to source batteries from the facility.
The transaction is subject to regulatory 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,” said David Kim, Chief Executive Officer of LG Energy Solution, in a press release.
Upon completion of the acquisition, LG Energy Solution will operate four stand-alone facilities in North America — LG Energy Solution Michigan Holland, LG Energy Solution Michigan Lansing, LG Energy Solution Arizona, NextStar Energy— alongside four joint-venture facilities in the region.
