LG Energy Solution becomes the sole owner after automaker sells its 49 per cent stake to joint-venture partner for $100

Canada’s first battery cell factory, NextStar Energy, is undergoing an ownership restructuring following an announcement from Stellantis that it is selling its stake in the company to LG Energy Solution.

The NextStar factory, located in Windsor, Ont., was originally formed as a $5 billion joint venture in 2022 between Stellantis and LG Energy Solution. Stellantis held a 49 per cent ownership stake, which it sold for just $100, as reported by Bloomberg News. The sale makes LG Energy Solution the sole owner of NextStar Energy.

More than three years after breaking ground, and less than three months after battery production began, the joint venture is being dissolved in “a mutually agreed, strategic decision” that will allow NextStar to “better serve a broader customer base, including the Energy Storage System (ESS) industry, and respond with greater agility to market conditions and demand to pursue future growth opportunities,” according to a press release.

In the announcement made last week, Stellantis confirms it will remain a customer of NextStar.

The federal government pledged up to $10.5 billion in funding and incentives for the Windsor plant, with the provincial government kicking in $5.5 billion. The federal government said the funds were performance-based incentives. 

Changing customer base

NextStar began producing battery modules in October 2024, with production of its own lithium-ion batteries beginning in November 2025. It currently employs more than 1,300 people and, when it reaches full scale, will employ at least 2,500. Yesterday, it announced the production of its one-millionth battery cell to date. 

“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,” reads a statement from Danies Lee, NextStar Energy’s CEO.

Based on the announcement, NextStar intends to act as a supplier to multiple customers both within and outside the auto industry. 

Upheaval in the supply chain

While the factory was first green-lit to support Canada’s EV supply chain, shifting economic priorities and complex geopolitics have led to significant upheaval in recent years. 

The result is that many proposed EV manufacturing facilities have been paused indefinitely or cancelled. 

NextStar, as one of the earliest battery suppliers in Canada, had already expanded production to include ESS batteries in November.

Stellantis scales back EVs

Stellantis, meanwhile, has announced that it is scaling back its EV manufacturing targets. 

Prior to 2024, the automaker aimed to have EVs account for 50 per cent of its U.S. sales by 2030. This week, following the announcement of the sale of its NextStar stake, it announced it was discontinuing production of certain battery-electric and plug-in hybrid models, delaying others and would take a €22.2 billion ($35.8-billion) charge related to the scale-back.

“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,” said Antonio Filosa, CEO of Stellantis, in a press release.

“This is a smart, strategic step that supports our customers, our Canadian operations, and our global electrification roadmap.”