Automotive group Stellantis has sold part of its stake in the “NextStar Energy” battery cell plant in Windsor, Canada. The buyer is South Korean joint venture partner and battery manufacturer LG Energy Solution (LGES). The total investment volume of the facility is estimated at around six billion US dollars. The move comes amid a currently weaker ramp-up of the electric vehicle market in North America.
Rebalancing financial exposure
According to reports, LGES is acquiring the stake in the Ontario plant for a symbolic purchase price. At the same time, the company remains operationally responsible for battery cell production. The aim of the transaction is to rebalance financial exposure in the current market environment and to secure the long-term continuation of the project. The plant is considered a key pillar in Stellantis’ battery supply strategy for North America.
General change in strategy
The partial divestment highlights the high capital requirements associated with building large-scale battery cell manufacturing. In an environment of slowing electric vehicle market growth, flexible ownership structures and risk-sharing models between OEMs and battery manufacturers are becoming increasingly important. According to experts, a stronger role for specialized battery producers could lead to more frequent adjustments of existing joint venture structures in the future.
Stabilization of production ramp-up
Representatives of the regional economic development agency Windsor-Essex view LG Energy Solutionʼs entry positively. A clearer ownership and operating structure could accelerate investment decisions and help stabilize the production ramp-up. For the Windsor region, the battery plant remains a key project for industrial value creation, employment, and workforce development in the battery sector.
Source:
Windsor Star
