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LG Energy Solution finishes $3.7b Canada battery factory
LG Energy Solution completed a large-scale battery factory in Windsor, Ontario.
The plant is run by NextStar Energy, LG Energy Solution’s Canadian production subsidiary, and will produce EV and ESS batteries for North America.
Mass production began in November 2025 and the factory has made over one million ESS cells, the company said.
NextStar began as a joint venture with Stellantis, but LG bought Stellantis’ 49% stake for US$100 in February 2026, after Stellantis scaled back its EV plans.
Its maximum annual capacity is 49.5 GWh, which equals batteries for about 450,000 EVs.
The company said it aims to expand capacity to create 2,500 jobs, but industry officials said more customers are needed to integrate production with EV assembly.
🔗 Source: Chosun Daily
🧠 Food for thought
Implications, context, and why it matters.
Canadian taxpayers are funding a large share of LG’s new battery plant
- The plant is framed as private money, yet Canadian federal and provincial governments may provide up to C$15 billion in production subsidies 1.
- The support comes as cash payments, unlike U.S. subsidies that run through a tax credit with an option to elect a cash payment, based on federal contract language cited by CBC (the Canadian public broadcaster) 2.
- Canada’s Parliamentary Budget Officer puts the break-even point at 20 years through tax revenue, which is longer than the government’s stated “less than five years” payback timeline for Volkswagen’s deal 3.
- A 2022 federal agreement required NextStar to hire 2,500 full-time employees within one year after the project completion date and keep that staffing level for the life of the deal. NextStar now employs more than 1,300 people 24.
Shifts in EV demand pushed NextStar toward ESS
- In February 2026, Stellantis sold its 49% stake in NextStar Energy to LG Energy Solution for US$100, according to multiple outlets 5.
- After the change, LG Energy Solution said full ownership would give it more room to serve more customers, including the Energy Storage System (ESS) industry, while it moves capacity between EV and ESS 4.
- Elsewhere, LG Energy Solution cited rising demand tied to AI and data centers as one factor behind growing ESS demand 6.
- Xcel Energy also signed a memorandum of understanding (MOU) with a subsidiary of NextEra Energy to speed delivery of generation resources for large load customers, including data centers 7.
