WINDSOR, ON — In a major shift for Canada’s burgeoning electric vehicle (EV) supply chain, South Korea’s LG Energy Solution (LGES) has acquired full ownership of the NextStar Energy battery plant in Windsor. The deal, announced Friday, 06 February 2026, sees automaker Stellantis exit the joint venture by selling its 49 per cent equity stake to its partner.
The 4.23 million-square-foot facility, which represents a $5 billion investment, is Canada’s first large-scale lithium-ion battery manufacturing site. While the plant was initially conceived to power Stellantis’s North American EV lineup, the automaker’s departure comes amid a strategic pivot and fluctuating global demand for electric vehicles.
Operational Continuity and Job Security
Despite the change in ownership, officials from both companies and labour leaders have moved quickly to reassure the local workforce. Key details regarding the transition include:
- Employment Stability: No job losses are expected among the current 1,300 employees. The facility maintains its long-term goal of reaching 2,500 workers at full capacity.
- Production Shift: While EV batteries remain a core focus, the plant recently expanded its mandate to include battery cells for grid-scale energy storage systems (ESS) to meet rising demand for renewable energy infrastructure.
- Subsidies: The plant remains eligible for up to $15 billion in performance-based incentives from the federal and provincial governments, contingent on production benchmarks.
Strategic Realignment
Industry analysts suggest the move allows Stellantis to reduce its direct capital exposure to battery manufacturing while maintaining a supply relationship with LGES. For LG Energy Solution, the acquisition provides total control over a massive production hub strategically located near the U.S. border, allowing it to leverage the facility’s full capacity for a broader range of international clients.
“By enabling LG Energy Solution to fully leverage the Windsor facility’s capacity, we are strengthening its long-term viability,” a company representative noted in a statement following the announcement. The deal is expected to close following standard regulatory approvals, marking a new chapter for the “Automotive Capital of Canada” as it transitions into a diversified energy storage hub.
The Windsor facility currently occupies 220 acres and is designed to produce more than 49 gigawatt-hours annually, enough to power hundreds of thousands of vehicles and storage units per year.