by Michael Gauthier
- Stellantis is selling their stake in NextStar Energy for just $100.
- Move comes amid lackluster EV sales and changing regulations.
- LG is shifting focus from EVs to energy storage systems.
Stellantis is pivoting away from electric vehicles as the company embraces the ‘power of choice.’ This has cost them billions and they’re selling their 49% stake in NextStar Energy to LG Energy Solution.
This is an interesting development as the NextStar Energy joint venture was established in 2022 and aimed to create Canada’s first large-scale battery manufacturing facility in Windsor. The plant was originally designed to employ approximately 2,500 people and have an annual production capacity of more than 45 gigawatt hours.
More: Stellantis’ Big Bet On EVs Was A $20 Billion Mistake
Battery module production began in the fall of 2024 and mass production of lithium-ion battery cells followed in November of 2025. While more than $3.7 billion ($5 billion CAD) has been invested into the facility, a lot has changed since 2022.
Electric vehicle adoption has grown more slowly than many automakers anticipated and the Trump administration recently eliminated federal tax credits. On top of that, tariffs have complicated things and automakers are now turning their attention away from EVs.
Stellantis didn’t go into many specifics, but called the move a “strategic decision” that was mutually agreed upon. They went on to describe themselves as a “committed customer” that “will continue to source battery products from NextStar Energy.”
Stellantis CEO Antonio Filosa said, “By enabling LG Energy Solution to fully leverage the Windsor facility’s capacity, we are strengthening its long-term viability while securing the battery supply for our electric vehicles. This is a smart, strategic step that supports our customers, our Canadian operations, and our global electrification roadmap.”
Those sentiments were echoed by LG Energy Solution CEO David Kim, who stated “LG Energy Solution 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 [Energy Storage System] market and position us to play a key role in Canada’s EV industry by securing additional North American-based customers.”
Despite the upbeat rhetoric, The Detroit News reports Stellantis sold their stake for just $100. That’s a token amount, especially given the sizable investment into the facility.
