LG Energy Solution acquires Canada battery JV NextStar

LG Energy Solution will acquire Stellantis’ 49 percent stake in the Canadian joint venture NextStar Energy for US$100, gaining full ownership, according to a regulatory filing.

The joint venture, was initially valued with Stellantis’ investment at US$980 million.

Industry analysts noted that LG Energy Solution’s purchase price is significantly lower than the original investment.

The company plans to use the plant as a key site for energy storage system (ESS) batteries, targeting the North American ESS market.

LG Energy Solution said the acquisition will enhance investment efficiency and allow direct access to Canadian government subsidies.

The company operates three North American ESS hubs and aims to nearly double its global capacity to over 60 GWh by the end of 2026.

🔗 Source: The Korea Times

🧠 Food for thought

Implications, context, and why it matters.

Stellantis sold its stake for $100 after an EV strategy reset

The US$100 price is symbolic next to the US$980 million Stellantis put into the plant, according to an LG regulatory filing 1.
Stellantis took a charge of about $36 billion tied to electric-vehicle investments after it said it overestimated how fast electrification would move 1.
The plant has started making energy storage system (ESS) batteries used to store electricity for the grid and large facilities. It still supplies EV batteries from the same site to Stellantis as NextStar leans into grid storage during a broader market slowdown while keeping the option to ramp EV output 2, 3.
The sale comes after Canada dropped EV sales mandates in favour of tougher emissions rules plus purchase incentives 4.

LG’s takeover positions NextStar to broaden its customer base

LG Energy Solution and NextStar said full ownership lets the facility serve more customers including the ESS industry and react faster to market shifts 5.
Unifor Local 444 president James Stewart said some automakers may have avoided buying from a plant co-owned by Stellantis. He said the “decoupling” could help NextStar add lines and retool for new buyers 6.
NextStar tied the move toward energy storage in part to AI data centres, which reduces reliance on consumer EV demand 2.
The factory has up to $15 billion in Canadian public production incentives. Ontario does not expect job cuts, and the companies still aim for 2,500 jobs as operations scale 1.