Stellantis selling its stake in the NextStar Energy battery plant in Windsor

Stellantis says it is selling its stake in Windsor’s NextStar battery plant. CTV Windsor’s Sanjay Maru has more.

Windsor’s massive electric-vehicle battery plant is moving to single ownership, with LG Energy Solution set to take full control after Stellantis agreed to sell its 49 per cent stake in the NextStar Energy joint venture.

The announcement marks a major shift at one of the largest industrial projects in the region’s history, but local officials and labour leaders say operations and hiring plans remain on track.

NextStar chief operating officer Brett Hillock said the decision is tied to changes in Stellantis’ broader electrification plans.

“Stellantis has made changes to their EV supply chain, and one of those decisions was exiting from the joint venture with LG,” Hillock said, adding the move will allow the Windsor facility “to continue to scale at an accelerated rate.”

In a written statement, Stellantis said the restructuring is intended to support the future of the plant.

“Our decision to restructure the NextStar Energy joint venture was difficult, but it is a necessary step to position the gigafactory for long-term success, including the ability to pursue third-party business,” said LouAnn Gosselin, head of Stellantis communications in Canada.

Gosselin said the decision does not affect vehicle production at the Windsor Assembly Plant.

“This change does not diminish Stellantis’ commitment to Canada.”

The NextStar plant, which began production in 2024, is Canada’s first large-scale EV battery factory. It employs more than 1,300 workers, with plans to grow to about 2,500 at full production.

Gosselin said the company’s hiring targets remain unchanged.

“There are currently 1,300 employees at NextStar Energy. The long-term target as capacity grows is to reach 2,500,” she said.

Unifor Local 444, which represents employees at the site, says workers were reassured about job security during a “town hall” Friday morning.

“There’s no intention to lay off anybody,” said Local 444 President James Stewart.

“They’re looking to expand the business. They’re looking to introduce new lines and new technologies to broaden what they can provide.”

Stewart said the development reflects broader shifts across the auto industry.

“We saw this coming. I think it’s probably a good move for both parties,” said Stewart, adding the slowdown in the EV market has been building “over the course of the last year.”

The ownership change comes as Stellantis reports significant financial charges tied to its electric-vehicle strategy.

According to Reuters, the automaker recorded about 22 billion euros in one-time charges, most of them linked to EV investments that have not delivered the expected returns.

Following the announcement that Stellantis was letting go its ownership stake, the company’s stock dipped about 20 per cent.

Hillock said the Windsor facility has already adjusted its production approach in response to changing market conditions.

“We’ve already showcased our rapid agility when we transitioned to ESS cell production with LG as a main customer,” he said.

“So, the resilience of NextStar just continues.”

Ontario Premier Doug Ford described the move as a “good business decision,” while Federal Industry Minister Mélanie Joly framed the announcement as a sign of continued international investment in Canada’s auto sector.

“It’s very welcome, and it shows that LG is here for the long run,” Joly said.

“We just signed a partnership with Korea on auto manufacturing last week. What are we seeing this week? LG is buying out Stellantis to invest more in Canada.”

Windsor Mayor Drew Dilkens said the ownership change strengthens the region’s role in advanced manufacturing and energy production.

“Today’s announcement that LGES will assume full ownership of NextStar Energy solidifies the facility as a cornerstone of the city’s and region’s advanced manufacturing and clean-energy ecosystem,” Dilkens said in a statement.

“Windsor is now a key player in the business of energy production and storage.”

The mayor said the battery plant is expected to support nearly 2,000 spin-off positions across the region.

Hillock said the new ownership structure could also broaden the plant’s customer base, since some automakers were reluctant to source batteries from a facility partly owned by a competitor.

This shift, he added, could help the plant reach a wider range of customers — including Stellantis itself, which says it will continue buying batteries from the Windsor operation.

The announcement came one day after the federal government unveiled a new national auto strategy, including billions of dollars in EV purchase incentives and charging-infrastructure funding.

Stewart, however, warned Canada still faces challenges in the evolving EV market.

“We’re the only jurisdiction in the world right now that’s not growing the EV industry,” he said.

“That’s going to pose as a problem in the future.”