LG Energy Solution to Take Full Control of Canadian Battery JV as Stellantis Scales Back EV Push

South Korea’s LG Energy Solution said it will acquire the 49% stake held by Stellantis in their Canadian battery joint venture for a nominal $100, taking full ownership of the facility. The plant, known as NextStar Energy, was launched in Ontario in 2022 as part of an aggressive electrification strategy and has already seen investments exceeding C$5 billion. LG said the factory will now focus more heavily on batteries for energy storage systems (ESS), while continuing to supply EV batteries to Stellantis and other North American customers.

The move comes as Stellantis announced it would book charges of about 22.2 billion euros in the second half of last year, citing a strategic shift that includes scaling back electric vehicle development. Automakers and battery producers have been grappling with slower-than-expected EV demand, particularly after policy changes under U.S. President Donald Trump, including the rollback of consumer tax credits that had supported EV adoption. The shift marks a notable cooling of the rapid expansion plans that defined the earlier EV boom.

LG Energy Solution has been restructuring several North American partnerships amid the demand slowdown. The company previously agreed to buy out General Motors’ stake in a joint battery plant in Michigan and has also faced setbacks from canceled contracts, including a major battery supply deal with Ford. By consolidating ownership of NextStar Energy, LG said it aims to respond more quickly to growing opportunities in the ESS market while maintaining a foothold in the evolving EV supply chain.

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