LG Energy Takes Full Control of NextStar in Strategic North American Pivot

WINDSOR, ON – February 06, 2026 – In a landmark strategic shift for North America’s burgeoning battery industry, LG Energy Solution announced today it will acquire full ownership of NextStar Energy, Canada's first and only commercial-scale battery manufacturing facility. The deal involves Stellantis selling its 49 per cent equity stake in the Windsor-based joint venture, transforming the plant into a wholly-owned subsidiary of the South Korean battery giant.

While the move realigns the ownership structure of the $5 billion CAD facility, both companies framed the decision as a mutually beneficial evolution. Stellantis, the global automaker behind brands like Jeep, Ram, and Chrysler, will remain a key customer, ensuring a stable supply of batteries for its ambitious electrification roadmap. For LG Energy Solution, the acquisition unlocks greater operational agility and paves the way for an aggressive expansion into the rapidly growing Energy Storage System (ESS) market.

A Tale of Two Strategies

The ownership transition, described as a "mutually agreed, strategic decision," reflects the diverging priorities of the two industrial titans in a rapidly evolving market. When the joint venture was established in 2022, it was hailed as a cornerstone of Canada’s electric vehicle ambitions. Now, under the new structure, NextStar Energy is set to broaden its horizons.

"LG Energy Solution sees growth opportunities in North America by situating a key production hub in Canada," said David Kim, Chief Executive Officer of LG Energy Solution, in a statement. "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."

This sentiment was echoed by Stellantis, which cast the move as a smart play to secure its supply chain while optimizing its capital. "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," stated Antonio Filosa, Chief Executive Officer of Stellantis. "This is a smart, strategic step that supports our customers, our Canadian operations, and our global electrification roadmap."

The transition allows NextStar to move beyond its role as a dedicated supplier to Stellantis. Under LGES's sole ownership, the facility can now court other automakers who may have been hesitant to purchase critical components from a plant partially owned by a direct competitor.

The Price of Agility: De-Risking in a Volatile Market

Behind the strategic realignment lies a stark financial reality. Research reveals that LG Energy Solution acquired Stellantis’s 49% stake for a symbolic price of just $100. This is a dramatic departure from the automaker's initial investment, which stood at approximately $980 million.

The divestment appears to be part of a broader capital reset for Stellantis. The automaker has been grappling with the high costs of the EV transition and a market that has not grown as quickly as some projections had anticipated. The company is reportedly facing significant one-time financial charges related to its EV investments, reflecting a strategic recalibration. By selling its stake for a nominal fee, Stellantis effectively sheds the financial risks and capital burdens of co-owning a massive manufacturing plant, while locking in its status as a priority customer. This move provides the automaker with greater financial flexibility and de-risks its battery supply strategy amidst market uncertainty.

For LG Energy Solution, the deal is a coup. It gains full control over a state-of-the-art, $5 billion facility for a negligible acquisition cost, allowing it to dictate production, reallocate capacity, and pursue new market opportunities with unmatched speed.

Beyond the EV: LGES's Pivot to Energy Storage

The NextStar acquisition is a critical component of LG Energy Solution's ambitious North American strategy, which extends far beyond the automotive sector. The company is aggressively positioning itself to dominate the burgeoning market for Energy Storage Systems—large-scale batteries used to stabilize power grids and store renewable energy.

LGES aims to increase its global ESS production capacity to over 60 GWh this year, with a staggering 50 GWh of that total concentrated in North America. The Windsor plant is central to this vision. Production of lithium iron phosphate (LFP) batteries specifically for ESS applications reportedly began at the facility in late 2025. With full ownership, LGES can now accelerate this pivot, making NextStar a key hub in its North American ESS manufacturing network.

This acquisition makes NextStar the fourth standalone LGES facility in the region, joining plants in Michigan and Arizona. This expanded footprint, combined with several other joint venture facilities, solidifies LGES's position as the largest and most diverse battery manufacturer in North America. The company is also poised to benefit from significant Canadian federal and provincial production incentives, further enhancing its cost competitiveness and profitability in the region.

Securing Canada's Clean Energy Future

The ownership change has been met with optimism from Canadian government officials and local leaders, who view it as a move that strengthens the long-term viability of the landmark project. The NextStar facility, which currently employs over 1,300 people with plans to scale to 2,500, is a linchpin in Canada's industrial strategy to build a domestic battery supply chain from raw materials to finished vehicles.

"This new ownership structure strengthens Canada’s position as a leader in battery manufacturing," said Danies Lee, Chief Executive Officer of NextStar Energy. He emphasized that the deal provides "long-term certainty to continue investing in our Canadian workforce and our manufacturing capacity."

Concerns about job security have been directly addressed, with officials reassuring the unionized workforce that employment targets remain firm. Windsor's Mayor Drew Dilkens hailed the decision, noting it solidifies the plant's role as a cornerstone of the region's advanced manufacturing and clean-energy ecosystem. The new structure not only secures the plant's future but also positions Windsor as a critical node in the broader North American energy production and storage landscape, with the facility's expanded mandate expected to create thousands of additional spin-off jobs across the region. As the sole owner, LG Energy Solution's commitment ensures the Windsor facility will continue to anchor Canada's battery ambitions for years to come.