LG Energy Solution to Acquire Full Ownership of NextStar Energy in Joint Strategic Decision with Stellantis

Rhea-AI Summary

LG Energy Solution will acquire full ownership of NextStar Energy as Stellantis (STLA) sells its 49% equity stake in the Windsor, Ontario battery facility. The transition follows a mutual strategic decision and remains subject to approvals and other conditions.

NextStar has attracted more than $5 billion CAD of investment, employs over 1,300 people with a long-term target of 2,500, and will leverage LG Energy Solution’s global operations to pursue broader customers including the ESS market. LG plans >60 GWh global ESS capacity this year, with >50 GWh in North America.

Positive

• Stellantis sells its 49% stake, enabling LG to consolidate ownership
• More than $5 billion CAD invested in NextStar Energy to date
• NextStar employs over 1,300 workers with a long-term target of 2,500
• Stellantis will remain a committed customer, preserving a sales relationship
• LG aims to increase global ESS capacity to over 60 GWh this year, with over 50 GWh in North America

Negative

• Closing is subject to approvals and other conditions, creating transaction uncertainty
• Stellantis relinquishes a 49% ownership stake, reducing its direct influence over NextStar Energy

Key Figures

NextStar investment: More than $5 billion CAD Stellantis stake sold: 49 per cent Current employment: over 1,300 employees +5 more

8 metrics

NextStar investment More than $5 billion CAD Capital invested in NextStar Energy facility to date

Stellantis stake sold 49 per cent Equity stake in NextStar Energy sold to LG Energy Solution

Current employment over 1,300 employees Current employment at NextStar Energy facility

Target employment 2,500 employees Long-term employment target at full production

Standalone plants NA four stand-alone facilities LG Energy Solution North American facilities post-acquisition

JV plants NA four joint venture facilities LG Energy Solution joint venture facilities in North America

Global ESS capacity over 60 GWh Planned global ESS production capacity this year

NA ESS capacity more than 50 GWh ESS production capacity concentrated in North America

Market Reality Check

Price: $7.28 Vol: Volume 16,067,021 is in-l...

normal vol

$7.28 Last Close

Volume Volume 16,067,021 is in-line with the 20-day average of 15,672,944 (rel. volume 1.03x). normal

Technical Price at $9.54 is trading below the 200-day MA ($10.11) and 33.19% under the 52-week high.

Peers on Argus

STLA is down 6.74% while key peers show mixed, smaller moves (e.g., LI +1.08%, F...

STLA is down 6.74% while key peers show mixed, smaller moves (e.g., LI +1.08%, F -0.22%, RIVN -2.69%). This points to a stock-specific reaction rather than a broad auto sector move.

Historical Context

5 past events · Latest: Feb 04 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 04	Product marketing update	Positive	+3.1%	Launch of online commercial and pricing/specs for 2026 Jeep Cherokee hybrid.
Feb 04	Motorsport partnership	Positive	+3.1%	Tony Stewart Racing Dodge livery reveal and motorsports branding promotion.
Feb 03	Product customization	Positive	+0.2%	New factory customization options for SIXPACK-powered 2026 Charger models.
Jan 29	Investor day announcement	Positive	+1.6%	Scheduling of Investor Day 2026 to present Stellantis strategic plan.
Jan 26	Sponsorship deal	Positive	-0.6%	Jeep becoming Global Automotive Partner of The Snow League in multi-season deal.

Pattern Detected

Recent brand and strategy updates have mostly aligned with positive price moves; today’s sharp decline on an acquisition-structure change contrasts with that pattern.

Recent Company History

Over the last few weeks, STLA news focused on marketing, brand partnerships and upcoming strategy communication. Product and branding items for Jeep and Dodge on Jan 26, Feb 3 and Feb 4 coincided with modestly positive or stable price moves, while the Investor Day announcement on Jan 29 also aligned with a gain. Against this backdrop, the negative move on the NextStar Energy ownership change reflects a different market response versus prior largely promotional updates.

Market Pulse Summary

This announcement details LG Energy Solution’s move to full ownership of NextStar Energy, with Stell...

Analysis

This announcement details LG Energy Solution’s move to full ownership of NextStar Energy, with Stellantis selling its 49% stake but remaining a battery customer. More than $5 billion CAD has been invested and employment is targeted to reach 2,500 as the Windsor facility scales. In context of recent branding and strategic communications, this represents a more structural change; investors may watch subsequent disclosures around capacity utilization, customer mix and capital commitments.

Key Terms

energy storage system (ess), gwh

2 terms

energy storage system (ess) technical

"broader customer base, including the Energy Storage System (ESS) industry"

A system that captures electricity when it’s abundant or cheap, stores it, and delivers it later on demand—think of it as a savings account or battery bank for the power grid that can use batteries, pumped water, compressed air or heat-based methods. It matters to investors because it smooths out supply and demand, lets generators and grids sell power at higher-value times, supports renewables, and can create steady revenue streams or reduce operational risk in energy projects.

gwh technical

"increase global ESS production capacity to over 60 GWh this year"

GWh (gigawatt-hour) is a unit that measures electrical energy equal to one billion watt-hours, commonly used to describe how much electricity a power plant produces, a battery stores, or a project consumes over time. For investors it signals scale and potential cash flow — like seeing the size of a fuel tank for energy projects — letting you compare capacity, expected output, and the revenue or cost implications between assets or companies.

AI-generated analysis. Not financial advice.

LG Energy Solution to Acquire Full Ownership of NextStar Energy in Joint Strategic Decision with Stellantis

• Ownership transition reflects a mutually agreed, strategic decision by LG Energy Solution and Stellantis, undertaken in consultation with NextStar Energy.
• Stellantis to sell its 49 per cent equity stake in NextStar Energy to its founding joint venture partner, LG Energy Solution.
• More than $5 billion CAD invested in NextStar Energy to date, reinforcing long-term growth, innovation, and commitment to high-quality Canadian jobs at Canada’s first and only commercial-scale battery manufacturing facility.
  
  

Windsor – 6 February 2026 – LG Energy Solution, Stellantis, and NextStar Energy today announced that LG Energy Solution will acquire full ownership of NextStar Energy, with Stellantis selling its 49 per cent equity stake to LG Energy Solution. 

NextStar Energy was established as a joint venture by the two companies in 2022 to build Canada’s first large-scale battery manufacturing facility in Windsor, Ontario, and will continue building a resilient and competitive foundation for Canada’s battery future.

The ownership transition is a mutually agreed, strategic decision by the joint venture’s two shareholders, LG Energy Solution and Stellantis. The decision was informed by extensive engagement with NextStar Energy’s leadership team to ensure a seamless transition and strengthen the company’s long-term growth and investment outlook.

Under the new ownership structure, NextStar Energy will leverage LG Energy Solution’s technological leadership and global operational expertise to better serve a broader customer base, including the Energy Storage System (ESS) industry, and respond with greater agility to market conditions and demand to pursue future growth opportunities.

Stellantis remains a committed customer and will continue to source battery products from NextStar Energy.

NextStar Energy’s facility is a cornerstone of Canada’s advanced manufacturing and clean-energy sector, anchoring domestic battery production, strengthening North America’s battery supply chain, and supporting Canada’s long-term industrial competitiveness. More than $5 billion CAD has been invested in the facility to date, and it employs over 1,300 employees, with a long-term target of 2,500 employees as it scales to full production.  

NextStar Energy will continue to play a pivotal role in strengthening Canada’s and North America’s battery manufacturing ecosystem by onshoring critical capabilities that meet the evolving needs of the automotive manufacturing sector and other strategic industries.   

The closing of this transaction is subject to approvals and other conditions.

Quotes

“LG Energy Solution sees growth opportunities in North America by situating a key production hub in Canada. 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.” 

• David Kim, Chief Executive Officer of LG Energy Solution
  
  

“By enabling LG Energy Solution to fully leverage the Windsor facility’s capacity, we are strengthening its long-term viability while securing the battery supply for our electric vehicles. This is a smart, strategic step that supports our customers, our Canadian operations, and our global electrification roadmap.”

• Antonio Filosa, Chief Executive Officer of Stellantis
  
  

“This new ownership structure strengthens Canada’s position as a leader in battery manufacturing. It provides long-term certainty to continue investing in our Canadian workforce and our manufacturing capacity while delivering sustained economic benefits for Canada and Ontario.”

• Danies Lee, Chief Executive Officer of NextStar Energy
  
  

LG Energy Solution’s North American Operations

LG Energy Solution is the largest battery company in North America with the most diverse manufacturing footprint, spanning multiple customers, use cases, chemistries and formats. Upon the completion of this acquisition, the company will operate four stand-alone facilities (LG Energy Solution Michigan Holland, LG Energy Solution Michigan Lansing, LG Energy Solution Arizona, NextStar Energy) and four joint venture facilities in the region.

As the global battery market expands beyond EV into diverse sectors such as ESS, robotics, Urban Aerial Mobility and ships, LG Energy Solution is strategically rebalancing its portfolio and enhancing operational efficiency. The company is reallocating production capacity between EV and Energy Storage Systems to minimize new investments while maximizing the utilization of existing production lines worldwide. This strategic shift aims to increase global ESS production capacity to over 60 GWh this year, with more than 50 GWh of this capacity concentrated in North America.

ABOUT THE COMPANIES

LG Energy Solution
LG Energy Solution (KRX: 373220) is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With more than 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 90,000 patents. Its robust global network, which spans North America, Europe, and Asia, includes battery manufacturing facilities established through joint ventures with major automakers. Committed to building sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its value chain by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution’s ideas and innovations, visit https://news.lgensol.com. 

Stellantis
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is a leading global automaker, dedicated to giving its customers the freedom to choose the way they move, embracing the latest technologies and creating value for all its stakeholders. Its unique portfolio of iconic and innovative brands includes Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep_®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. For more information, visit www.stellantis.com

NextStar Energy   
NextStar Energy is Canada’s first large-scale battery manufacturing facility. Located in Windsor, Ontario, NextStar Energy is dedicated to the development and innovation of sustainable and efficient energy solutions, empowering the future of mobility. For more information, visit nextstar-energy.com.

CONTACT INFO

LG Energy Solution
LG Energy Solution Global Communications Team
lgesnews@lgensol.com

Stellantis
Kaileen Connelly
248-428-5168
Kaileen.connelly@stellantis.com

LouAnn Gosselin
519-984-2600
Louann.gosselin@stellantis.com

NextStar Energy
Daniela Ferro
519-984-1215
danielaferro@nextstar-energy.com

 
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Attachment

• EN-20260206-LG-Energy-Solution-to-Acquire-NextStar-Energy

FAQ

What did Stellantis (STLA) announce about its 49% stake in NextStar Energy on February 6, 2026?

Stellantis announced it will sell its 49% equity stake in NextStar Energy to LG Energy Solution. According to Stellantis, the sale is a mutually agreed strategic decision and Stellantis will remain a customer sourcing battery products from NextStar Energy.

How much has been invested in NextStar Energy and what are its employment targets?

More than $5 billion CAD has been invested in the NextStar facility to date. According to the companies, the plant employs over 1,300 workers today and has a long-term target of 2,500 employees as it scales to full production.

Will Stellantis still buy batteries from NextStar Energy after the ownership change?

Yes. Stellantis will remain a committed customer and continue sourcing battery products from NextStar Energy. According to the announcement, the customer relationship will continue under LG Energy Solution’s full ownership to secure Stellantis’ EV battery supply.

What strategic benefits does LG Energy Solution expect from acquiring full ownership of NextStar Energy?

LG expects to leverage its technological leadership and global operations to serve broader customers and respond faster to ESS demand. According to LG Energy Solution, this enables greater agility across markets and supports expansion into ESS and additional North American customers.

When will the NextStar Energy ownership transfer be completed and are there conditions?

The transaction closing is subject to approvals and other customary conditions and has not yet closed. According to the companies, completion depends on obtaining required approvals and satisfying closing conditions before the ownership transfer is finalized.