LG Energy Solution has announced a major strategic move in North America’s electric vehicle supply chain. The South Korean battery giant will acquire full ownership of NextStar Energy, following Stellantis’ decision to sell its 49 percent stake in the joint venture.
The decision reflects a mutually agreed strategy between LG Energy Solution and Stellantis and reinforces long-term investment in Canada’s first commercial-scale battery manufacturing facility, located in Windsor, Ontario.
Why the LG Energy Solution NextStar Energy acquisition
NextStar Energy was formed in 2022 as a joint venture between LG Energy Solution and Stellantis to support battery production for electric vehicles in North America. After extensive discussions with NextStar Energy’s leadership, both partners agreed that a full ownership transition would best support future growth.
By becoming the sole owner, LG Energy Solution gains greater flexibility to:
Respond faster to changing market demand
Serve a wider customer base beyond automotive
Expand into energy storage systems (ESS) and other emerging sectors
This transition is designed to strengthen NextStar Energy’s long-term competitiveness rather than signal a withdrawal from the EV market.
Stellantis Remains a Key Battery Customer
Although Stellantis is selling its equity stake, the automaker is not walking away from NextStar Energy. Stellantis will continue to source battery products from the Windsor facility to support its electric vehicle lineup.
This approach allows Stellantis to:
Secure battery supply for its EVs
Reduce operational complexity
Stay aligned with its global electrification strategy
The move reflects a strategic shift rather than a breakdown of the partnership.
Canada’s Battery Manufacturing Gets a Long-Term Boost
NextStar Energy plays a crucial role in Canada’s clean-energy and advanced manufacturing ecosystem. The Windsor facility anchors domestic battery production and strengthens North America’s battery supply chain.
Key Facility Highlights
i) Over $5 billion CAD invested to date
ii) More than 1,300 employees currently
iii) Long-term goal of 2,500 jobs at full production
iv) Canada’s first and only large-scale battery plant
The facility is expected to remain a cornerstone of Canada’s industrial competitiveness for decades.
How Full Ownership Benefits NextStar Energy’s Future
Under LG Energy Solution’s full ownership, NextStar Energy will benefit from:
Advanced battery technology leadership
Global manufacturing expertise
Improved ability to scale production efficiently
The company is also expected to support industries beyond automotive, including:
Energy Storage Systems (ESS)
Robotics
Urban air mobility
Marine and industrial applications
This diversification helps future-proof the business against market volatility.
LG Energy Solution’s Expanding North American Footprint
LG Energy Solution is already the largest battery manufacturer in North America, operating multiple facilities across the region.
Following the acquisition, LG Energy Solution will operate:
Four standalone facilities, including NextStar Energy
Four joint-venture facilities with automakers
The company is also rebalancing production between EV batteries and energy storage systems, aiming to boost global ESS capacity to over 60 GWh, with most of that growth centered in North America.
What This Means for the EV and Battery Industry
This ownership change highlights a broader trend in the automotive sector:
Automakers are focusing on vehicle production and brand strategy
Battery specialists are taking greater control of manufacturing
For Canada and North America, the move strengthens domestic battery production while maintaining strong ties between automakers and suppliers.
Future Outlook
LG Energy Solution’s decision to acquire full ownership of NextStar Energy marks a significant milestone for Canada’s EV battery industry. With billions already invested and thousands of jobs at stake, the transition signals long-term confidence in North American battery manufacturing—even as the global EV market continues to evolve.
FAQ: LG Energy Solution NextStar Energy Acquisition
1. Is LG Energy Solution a good stock to buy?
LG Energy Solution is a leading global battery manufacturer, with a strong presence in North America and advanced battery technology. Its acquisition of full ownership of NextStar Energy highlights long-term growth and strategic positioning in the EV and energy storage markets. While this demonstrates strong business fundamentals, investing in stocks involves risks, so consider consulting a financial advisor before buying.
2. Is LG buying Stellantis?
No. LG Energy Solution is not buying Stellantis. Instead, Stellantis sold its 49% stake in the joint venture NextStar Energy to LG Energy Solution. Stellantis remains a key customer and will continue sourcing batteries from the facility for its electric vehicles.
3. What do the future prospects of LG Energy Solution look like?
With full ownership of NextStar Energy, LG Energy Solution is better positioned to:
Scale production efficiently
Serve a broader customer base beyond automotive
Expand into energy storage systems (ESS) and other emerging sectors
Strengthen North America’s EV and battery supply chain
This strategic move reflects confidence in long-term growth and leadership in EV batteries and clean energy solutions.
4. Is LG Energy Solution a Korean company?
Yes. LG Energy Solution is a South Korean company and a global leader in lithium-ion battery technology. It has multiple manufacturing facilities worldwide, including in North America, and is focused on sustainable battery production for electric vehicles and energy storage systems.
