Stellantis Bails on Windsor Battery Plant Following Move Away from EVs

By Sébastien Bell

Feb 6, 2026 · 2 min read

Summary

The battery plant will forge and is now owned entirely by LG.

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Stellantis announced today that it will sell its 49 per cent stake in NextStar Energy, a company it formed with LG Energy Solutions (LGES) in 2022 to make electric vehicle (EV) batteries at a plant in Windsor, Ont. The Korean battery giant will now own 100 per cent of the plant.

The terms of the buyout have not yet been made public, but there is no indication that any of the 1,300 workers who operate the plant are at risk of being laid off. In fact, Unifor, which represents around 800 of the people who keep the plant running, commended LGES for its adaptability.

Although NextStar was initially envisioned as an EV battery manufacturing facility, a shifting political landscape forced the company to change tack. In November, it announced that it would make energy storage systems (ESS) for static applications, such as capturing wind and solar power for later use, in addition to making batteries for vehicles.

“LG Energy Solution sees growth opportunities in North America by situating a key production hub in Canada,” said Daivd Kim, CEO of LGES, in a statement. “Full ownership of NextStar Energy will enable us to respond swiftly to the growing demand from the ESS market and position us to play a key role in Canada’s EV industry”

Stellantis said it will continue to source batteries from the plant. However, it announced earlier this week that it is scaling back its EV ambitions, especially in North America while announcing its disappointing financial results for 2025. The automaker’s stock took a big hit, falling by as much as 25 per cent on Friday.

Kim said NextStar is open to looking for other automotive customers in North America. While it is not currently clear which automakers might want to take advantage of the plant, the Canadian government announced its plan to support the nation’s auto sector, pledging additional support for automakers who invest in manufacturing here while providing additional tax incentives for zero-emission vehicles made in Canada.

Meet the Author

Sébastien has been writing about cars for about a decade and reading about them all his life. After receiving a bachelor’s degree in English from Wilfrid Laurier University, he entered the fast-paced world of automotive journalism and developed a keen eye for noteworthy news and important developments in the industry. Off the clock, he’s an avid cyclist, a big motorsports fan, and if this doesn’t work out, he may run away and join the circus after taking up silks.