LG Energy Solution will solely own its Canadian battery plant. LG Energy Solution said on Thursday it will acquire Stellantis' 49 percent stake in the Canadian joint venture Nextstar Energy.

That will turn Nextstar Energy into a wholly owned subsidiary. Nextstar Energy has been producing batteries for energy storage systems since November. It is considered a key ESS hub among LG Energy Solution's North American production bases. The company plans to double its North American production capacity this year and grow revenue by more than 3 times, based on the Canadian plant.

It will also receive investment subsidies from the Canadian government and production subsidies equivalent to the U.S. AMPC on its own. Stellantis will continue to receive supplies of electric vehicle batteries from the Canadian plant after selling its stake.

Antonio Filosa (안토니오 필로사), CEO of Stellantis, said, "By enabling LG Energy Solution to make maximum use of production capacity at the Windsor plant in Canada, it has strengthened long-term competitiveness while also securing stability in the supply of electric vehicle batteries." He added, "This is a strategic choice that supports customers, the Canadian business and the global electrification strategy."

LG Energy Solution is currently the only company producing batteries for ESS in North America. With this stake acquisition, it has secured 3 ESS production bases in North America, following the Michigan Holland plant and the Michigan Lansing plant. Nextstar Energy plans to more than double ESS battery output this year.

It is continuing to win large-scale orders from global customers including Teragen, Excelsior Energy Capital, EG4 and Hanwha Q CELLS. It has secured accumulated orders of about 140 GWh in the global market, and new orders this year are expected to exceed last year's record of 90 GWh. The company expects the plant to be used as a production hub that can target the ESS market and also meet volumes from new customers.

Kim Dong-myung (김동명), CEO of LG Energy Solution, said, "By establishing a key production base in Canada, we have been able to further solidify the foundation for growth in the North American market." He added, "We will not only respond quickly to surging demand in the ESS market, but also secure additional North America-based customers and build a position to play a key role in the electric vehicle industry."