Stellantis, the global automaker behind brands such as Chrysler, Dodge, Jeep, and Citroën, has announced an agreement to divest its 49% stake in NextStar Energy, a Canada-based electric vehicle (EV) battery manufacturing joint venture, to its partner LG Energy Solution. Following the transaction, LG Energy Solution will assume full ownership of the facility.
NextStar Energy was established in 2022 as a joint venture between Stellantis and LG Energy Solution with the objective of building Canada’s first large-scale domestic EV battery manufacturing plant. The facility has an annual production capacity exceeding 45 GWh and represents one of the country’s most significant clean energy manufacturing investments. To date, more than C$5 billion (approximately USD 3.7 billion) has been invested in the project.
According to a filing with the Korean Financial Supervisory Service, LG Energy Solution will acquire Stellantis’ stake for a nominal consideration of $100.
The stake sale coincides with a broader strategic shift at Stellantis. The company announced a major “reset” of its business strategy, including a €22.2 billion (around USD 26 billion) charge, as it scales back its EV ambitions. Stellantis said the move is intended “to align the Company with the real-world preferences of its customers.”
This development reflects a wider trend across the global automotive industry, where manufacturers are reassessing large investments in EV and battery production amid slower-than-anticipated EV adoption in key markets.
Other automakers have taken similar steps. Ford recently disclosed a $19.5 billion charge linked to rationalizing its U.S. EV-related assets and product roadmap. At the same time, Ford launched a battery energy storage systems (BESS) business, aiming to repurpose parts of its existing battery manufacturing capacity to serve growing demand from data centers and grid infrastructure.
Following the acquisition, LG Energy Solution said it plans to reposition NextStar Energy to serve a broader customer base beyond automotive OEMs. The company highlighted its intention to expand its presence in the Energy Storage System (ESS) market as part of a wider capacity reallocation strategy between EV and ESS production. LG Energy Solution aims to increase its global ESS capacity to more than 60 GWh this year, including over 50 GWh in North America.
Commenting on the transaction, David Kim, CEO of LG Energy Solution, said, “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.”
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