LG Energy Solution acquires full ownership of NextStar Energy from Stellantis

LG Energy Solution has bought Stellantis's 49% stake in NextStar Energy, becoming the sole owner of the Windsor battery joint venture; Stellantis said it will remain a customer and batteries at the Windsor plant have been reprioritized for grid storage.

LG Energy Solution has acquired Stellantis's 49 per cent stake in NextStar Energy, making the South Korean firm the sole owner of the joint venture behind a large battery plant in Windsor, Ontario. The partnership began in 2022 to build a large-scale battery manufacturing facility in Canada. In November the companies announced that batteries from the plant would be prioritized for power grid storage rather than primarily for automotive use. Stellantis said it remains a "committed customer" and will continue to source batteries from NextStar. Key details: - LG Energy Solution purchased Stellantis's 49% equity stake and is now sole owner of NextStar Energy. - The NextStar joint venture was formed in 2022 to develop a large-scale battery plant in Windsor, Ont. - Companies report roughly 1,300 employees at the Windsor plant, with a long-term target of about 2,500. - The federal government has pledged up to $10 billion in production subsidies and the provincial government has pledged $5 billion. - In November, production at the plant was announced as being prioritized for grid storage; Stellantis said it will continue to source product from NextStar. - Stellantis announced a scaling back of its electric vehicle plans the same day, and its Milan-listed shares fell sharply. Summary: The change gives LG Energy Solution full control of NextStar's Windsor operations and formalizes the reported shift toward producing batteries for grid storage. Stellantis says it will remain a customer and the companies highlight ongoing investment and employment goals. Undetermined at this time.