NextStar Energy Gains Momentum as LG Energy Solution Pivots Toward ESS, Next-Generation Batteries
LG Energy Solution’s Canadian battery plant, NextStar Energy, is emerging as a key asset, offsetting slower performance in some European and US facilities amid a global electric vehicle (EV) market slowdown.
According to LG Energy Solution’s audit report released Thursday, NextStar Energy, located in Windsor, Ontario, reported revenue of 362.4 billion won ($268 million) last year, a 22.4 percent increase year-over-year.
The plant’s operating profit reached 53 billion won, marking a nearly fivefold increase from the previous year, despite being in its early operational stages.
NextStar Energy, a joint venture between LG Energy Solution and Stellantis, stands as Canada’s first large-scale battery manufacturing facility. Construction commenced in 2022, with module production beginning in October 2024.
Initially, the plant focused on assembling battery modules using cells sourced from other LG Energy Solution facilities, including those in Poland. However, in November of the previous year, the factory initiated full-scale production of electrodes and battery cells, significantly expanding its manufacturing capabilities.
Last month, LG Energy Solution acquired full ownership of the plant, transforming it into a wholly owned facility. Within approximately three months of commencing mass cell production, the plant surpassed 1 million units in cumulative output, showcasing rapid operational stabilization.
The batteries produced at NextStar Energy are primarily supplied to Stellantis for use in their electric vehicles. Additionally, the plant manufactures lithium iron phosphate pouch long cells for energy storage systems (ESS), which are then distributed across North America.
Increased investment in power grids and the rapid growth of AI data centers have significantly boosted demand for energy storage systems in the region, further fueling the plant’s growth trajectory.
Government incentives have also played a crucial role in supporting operations. Since 2024, NextStar Energy has received over 530 million Canadian dollars ($390 million) in production subsidies and tax credits from the Canadian government.
The plant’s strong performance contrasts with challenges faced by some of LG Energy Solution’s other overseas facilities. The company’s factory in Wroclaw, Poland, experienced a 33.2 percent revenue decrease last year due to weakening EV demand across Europe.
Looking forward, LG Energy Solution is focusing on new growth areas, including energy storage systems and next-generation cylindrical batteries, to navigate the evolving EV market. The company aims to increase its US energy storage production capacity to 50 gigawatt-hours by the end of this year, up from the current 30 GWh.
The original Korean version of this story is available at:
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