Automaker Stellantis is selling its stake in its joint venture battery manufacturing plant in Ontario to its partner, LG Energy Solution.
Financial terms of the agreement were not immediately available.
LG Energy Solution chief executive David Kim said the company sees growth opportunities in North America by situating a key production hub in Canada.
“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 by securing additional North American-based customers,” Kim said in a statement.
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NextStar Energy was established as a joint venture by the two companies in 2022.
Under the deal, LG Energy Solution will hold full ownership of the plant in Windsor, Ont., with the acquisition of the 49 per cent stake held by Stellantis.
NextStar Energy employs over 1,300 employees, with a long-term target of 2,500 as it grows to full production.
The companies said Stellantis remains a committed customer and will continue to source battery products from NextStar Energy.
“This is a smart, strategic step that supports our customers, our Canadian operations, and our global electrification road map,” Stellantis chief executive Antonio Filosa said.
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