LG Energy Solution Acquires Full Ownership of NextStar Energy in Canada

LG Energy Solution acquires full ownership of NextStar Energy from Stellantis, enhancing Canada's battery industry.

In a significant development for Canada’s battery industry, LG Energy Solution has announced its acquisition of full ownership of NextStar Energy. This move comes as Stellantis decides to sell its 49% stake in the joint venture to LG Energy Solution.

Formed in 2022, NextStar Energy was a collaborative effort between LG Energy Solution and Stellantis to establish Canada’s first large-scale battery manufacturing facility located in Windsor, Ontario. The venture is designed to bolster Canada’s battery industry and lay a robust foundation for future developments in the sector.

The transition in ownership from a joint venture to full ownership by LG Energy Solution was a strategic decision agreed upon by both stakeholders. It involved close consultations with NextStar Energy’s leadership to ensure the transition strengthens the company’s growth trajectory and investment potential.

With LG Energy Solution now at the helm, NextStar Energy will capitalize on its parent company’s technological prowess and global expertise. This shift will enable the company to better cater to a wide range of customers, including those in the Energy Storage System (ESS) industry, and to adapt more swiftly to market demands and opportunities.

Despite the change in ownership, Stellantis will continue to source battery products from NextStar Energy, maintaining its role as a key customer.

The NextStar Energy facility is instrumental in advancing Canada’s clean-energy sector and strengthening the North American battery supply chain. With over $5 billion CAD already invested, the facility employs more than 1,300 people, aiming to increase its workforce to 2,500 as operations reach full capacity.

NextStar Energy remains essential in fortifying the battery manufacturing capabilities in Canada and North America, addressing the needs of the automotive sector and other strategic industries.

The completion of this acquisition is pending regulatory approvals and other conditions.

Quotes

David Kim, CEO of LG Energy Solution, stated, “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.”

Antonio Filosa, CEO of Stellantis, commented, “By enabling LG Energy Solution to fully leverage the Windsor facility’s capacity, 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.”

Danies Lee, CEO of NextStar Energy, added, “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.”

LG Energy Solution’s North American Operations

As North America’s largest battery company, LG Energy Solution boasts a diverse manufacturing footprint serving various sectors such as ESS, robotics, and Urban Aerial Mobility. Upon finalizing this acquisition, LG Energy Solution will operate four standalone facilities in North America, including NextStar Energy.

With the global battery market expanding beyond electric vehicles, LG Energy Solution is strategically reallocating production capacity to enhance efficiency. This shift aims to boost global ESS production capacity to over 60 GWh this year, with more than 50 GWh centered in North America.

About the Companies