NextStar Energy, a 50:50 joint venture between Korea’s LG Energy Solution and Stellantis, said Monday it will begin producing energy storage system batteries later this month at its Windsor plant in the Canadian province of Ontario, expanding its portfolio beyond electric vehicle batteries.
The move comes as Stellantis slows its EV rollout in North America, prompting the company to adjust its production strategy. Originally built to make nickel-cobalt-manganese, or NCM, batteries for Stellantis EVs, the plant will now convert part of its 49.5-gigawatt-hour capacity to produce lithium iron phosphate, or LFP, batteries for ESS applications. Production volumes have not been disclosed.
The company said the shift reflects its ability to adapt to changing market dynamics. “NextStar Energy’s expansion into energy storage reflects the company’s flexibility and commitment to sustainable innovation,” said Lee Hoon-seong, CEO of NextStar Energy.
NextStar will continue to produce NCM batteries for EVs alongside its new LFP lines, maintaining a two-track strategy that serves both mobility and energy storage markets.
The Windsor facility will be LG Energy Solution’s second North American LFP production site, following its Michigan plant that began ESS battery output in June. LG Energy Solution plans to expand its regional ESS capacity to over 30 GWh by 2026, responding to surging demand in North America.
The company’s global ESS backlog climbed from 50 GWh to 120 GWh in the third quarter, while quarterly operating profit rose 22.2 percent to 492.2 billion won ($342 million) during the same period.
forestjs@heraldcorp.com
