LG Energy Solution will convert its Canadian battery joint venture, NextStar Energy, into a wholly owned subsidiary by acquiring its partner’s stake.
The company announced on February 6 that it will purchase the 49 percent stake held by Stellantis in NextStar Energy, allowing LG Energy Solution to operate the entity as a 100 percent-owned subsidiary. By ending the joint venture structure, the company aims to position the facility as a core production base for expanding its energy storage system (ESS) business in North America.
NextStar Energy began mass production of batteries for ESS applications in late November last year and is regarded as one of LG Energy Solution’s most strategically important manufacturing sites in North America. The company plans to double its production capacity in the region this year and to more than triple its ESS revenue.
Through the stake acquisition, LG Energy Solution expects to improve investment efficiency and financial stability, while also strengthening its eligibility for subsidy support from the Canadian government.
Despite the change in ownership structure, cooperation between the two companies will continue. Stellantis said it will continue to receive electric vehicle batteries produced at the Canadian plant.
With the acquisition, LG Energy Solution will secure three ESS production bases in North America, following its plants in Holland and Lansing, Michigan. The company noted that it is currently the only battery manufacturer producing ESS batteries in North America.
Antonio Filosa said the decision was a strategic move to secure long-term competitiveness and ensure a stable battery supply.
LG Energy Solution plans to expand its global ESS production capacity to around 60 gigawatt-hours (GWh) by the end of this year, with more than 50 GWh located in North America.
NextStar Energy is an advanced battery manufacturing facility built with a total investment exceeding 5 billion Canadian dollars by the two companies. The plant currently employs about 1,300 workers, with plans to increase headcount to 2,500 in the future.
Kim Dong-myung said securing a key production base in Canada has further strengthened the company’s foundation for growth in the North American market, adding that LG Energy Solution will actively respond to rapidly growing ESS demand and expand its customer base across the broader electric vehicle industry.
