Kang Seung-woo is the Business Desk editor at The Korea Times. Prior to this position, he covered politics, national affairs, finance and sports.
LG Energy Solution to take full control of Canadian battery JV with Stellantis
The NextStar Energy plant in Canada / Courtesy of LG Energy Solution
By Kang Seung-woo
LG Energy Solution said Friday it will acquire the full stake in its joint venture with multinational automaker Stellantis, making the firm a wholly owned subsidiary.
In a regulatory filing, the Korean battery maker said it will acquire Stellantis’ 49 percent stake in NextStar Energy for just $100, effectively gaining full ownership of the joint venture originally established in 2022 in Ontario, Canada. Industry analysts described the deal as highly favorable, noting that Stellantis’ initial investment in the joint venture totaled $980 million. This means LG Energy Solution secured a fully operational factory at a fraction of the cost.
LG Energy Solution plans to use the NextStar Energy facility as a key production hub for energy storage system (ESS) batteries, targeting the rapidly growing North American ESS market. Despite the ownership change, LG and Stellantis will continue their business cooperation, with Stellantis still set to receive electric vehicle (EV) batteries produced at the Canadian plant.
“Full ownership of NextStar Energy will enable us to respond swiftly to growing demand in the ESS market and position us to play a key role in Canada’s EV industry by securing additional North America-based customers,” LG Energy Solution CEO Kim Dong-myung said.
The NextStar Energy plant began ESS battery production in November 2025 and is considered a “turnkey” facility, capable of immediate large-scale output. LG Energy Solution said the acquisition will improve investment efficiency, financial soundness and profitability, as it can now receive Canadian government investment and production subsidies directly.
With this deal, LG Energy Solution will operate three North American ESS production hubs, including its two Michigan facilities. The company plans to nearly double its global ESS production capacity to more than 60 gigawatt-hours by the end of this year, with North America accounting for over 50 gigawatt-hours.
The NextStar Energy plant is expected to more than double its battery output in 2026, achieving a utilization rate of roughly 70 percent and reducing fixed-cost burdens.