Stellantis Sells 49% Stake in NextStar Energy JV to LG Energy Solution in Major Battery Supply Chain Partnership
12 February 2026
In a pivotal move for **electric vehicles & hybrid technology**, Stellantis announced today the sale of its 49% stake in the NextStar Energy joint venture to LG Energy Solution, marking a significant realignment in global battery supply chains. This transaction, centered in Canada, underscores the intensifying competition among Asian battery giants to secure manufacturing footprints in key markets. NextStar Energy, originally a collaboration for gigafactory development, will now operate under full LGES control, accelerating production of lithium-ion cells tailored for Stellantis' EV lineup, including models bound for Asian and European assembly lines.
The deal, valued strategically amid surging **EV** demand in Asia-Pacific, allows Stellantis to refocus capital on core **powertrain systems** and **automotive manufacturing** while leveraging LGES's expertise in high-density cathodes and fast-charging tech. For B2B stakeholders, this partnership exemplifies **supply chain & logistics** optimization, ensuring resilient sourcing amid geopolitical tensions affecting raw materials like nickel and cobalt. Asian OEMs such as BYD and CATL are watching closely, as similar JV restructurings could reshape regional dominance in **battery technology**.
Operationally, the Windsor, Ontario facility—NextStar's flagship—aims for 40 GWh annual capacity by 2028, supplying cells for mid-size SUVs and trucks. This bolsters Stellantis' **production & operations** in North America, reducing reliance on Asian imports while complying with IRA incentives. LGES, already a powerhouse with plants in South Korea and China, gains a foothold for exporting to Japan and ASEAN markets, enhancing its **research & development** in solid-state prototypes. Industry analysts project this will cut EV battery costs by 15-20% through economies of scale, critical for **vehicle design & engineering** teams targeting affordable mass-market models.
From a regulatory standpoint, the shift aligns with Canada's critical minerals strategy and EU battery passport mandates, promoting traceability in **automotive materials**. Suppliers in **automobile components** will integrate these cells into modules, demanding updated **testing & diagnostics** protocols for high-voltage packs. Executive moves at LGES signal hires from Panasonic and SK On to lead integration, fostering **industry partnerships** across borders. This divestiture also frees Stellantis resources for **connected vehicles** investments, like telematics for fleet EVs.
The broader implications ripple through Asia's ecosystem: Japanese firms like Panasonic may accelerate U.S. expansions, while Chinese suppliers pivot to Southeast Asia. For OEM executives, it highlights the need for flexible JVs in volatile markets. **Safety & regulations** benefit from LGES's proven thermal management, reducing fire risks in dense urban deployments. Digital transformation plays a role too, with LGES deploying AI-driven **IT & digital solutions** for predictive battery health, shared via APIs with partners.
Webinars and press releases from both firms detail phased transitions, ensuring no disruptions to 2026 production ramps. This move sets a precedent for **appointments & executive moves**, with Stellantis appointing LGES liaisons to its procurement board. In **autonomous driving** pursuits, reliable batteries enable longer sensor uptime. Ultimately, the deal fortifies supply chain resilience, propelling the industry towards net-zero goals while delivering ROI for investors in Asian battery tech.