The landscape of Canada’s automotive future shifted dramatically on 06 February 2026, as Stellantis announced the sale of its entire 49 per cent stake in the NextStar Energy battery plant in Windsor, Ontario. The South Korean partner, LG Energy Solution, will acquire full ownership of the facility for a reported sum of US$100.
The move marks a significant pivot for the $5-billion project, which was originally hailed as a cornerstone of the Stellantis-LG joint venture. Despite the ownership change, officials have indicated that no immediate job losses are expected for the workforce in Windsor. The plant, which spans 445,000 square feet, remains a critical piece of Ontario’s industrial infrastructure, with a projected annual production capacity of 49.5 gigawatt-hours—enough to power approximately 450,000 vehicles.
Several key factors define the current state of the Windsor facility:
- Strategic Shift to ESS: In late 2025, NextStar announced it would prioritise the production of batteries for Energy Storage Systems (ESS) alongside electric vehicle (EV) components. This diversification is seen as a response to fluctuating global EV demand.
- Government Subsidies: The facility remains eligible for up to $15 billion in performance-based incentives from the Canadian federal and Ontario provincial governments over the next decade.
- Production Milestones: Battery module production has already commenced at the site, with the facility occupying 217 acres on Windsor’s eastern boundary.
Industry analysts suggest that Stellantis’s exit reflects a broader “new direction” for the automaker under CEO Antonio Filosa, as the company seeks to streamline its capital investments. Meanwhile, LG Energy Solution’s decision to take 100 per cent control signals a long-term commitment to the Windsor site as a primary hub for North American battery manufacturing.
Unifor, the union representing many auto workers in the region, issued a statement following the news, noting that while the ownership structure has changed, the operational goals and the necessity of the plant for the local economy remain intact. The facility continues to be the largest private-sector investment in Ontario’s history.