NextStar Energy gains momentum as LG Energy Solution pivots toward ESS, next-generation batteries
LG Energy Solution’s Canadian battery plant is emerging as a bright spot for the company as the global electric vehicle market slows, offsetting weaker performance at some of its European and US facilities.
According to the company’s audit report released Thursday, NextStar Energy, LG Energy Solution’s battery plant in Windsor, Ontario, posted revenue of 362.4 billion won ($268 million) last year, up 22.4 percent from a year earlier.
Operating profit reached 53 billion won, surging nearly fivefold from the previous year despite the plant still being in its early stage of operations.
NextStar Energy was established as a joint venture between LG Energy Solution and Stellantis and is the first large-scale battery manufacturing facility in Canada. Construction began in 2022, with module production starting in October 2024.
Initially, the plant assembled battery modules using cells produced at other LG Energy Solution facilities, including those in Poland. In November last year, however, the factory began full-scale production of electrodes and battery cells, expanding its manufacturing capabilities.
Last month LG Energy Solution acquired full ownership of the plant, converting it into a wholly owned facility. Within about three months of starting mass cell production, the plant surpassed 1 million units in cumulative output, reaching operational stability at a rapid pace.
Batteries produced at the facility are supplied to Stellantis electric vehicles. The plant also manufactures lithium iron phosphate pouch long cells for energy storage systems, which are shipped across North America.
Rising investment in power grids and the rapid expansion of AI data centers have boosted demand for energy storage systems in the region, providing additional momentum for the plant’s growth.
Government incentives have also supported operations. Since 2024, NextStar Energy has received more than 530 million Canadian dollars ($390 million) in production subsidies and tax credits from the Canadian government.
The plant’s performance contrasts with challenges at some other overseas facilities. LG Energy Solution’s factory in Wroclaw, Poland, saw revenue fall 33.2 percent last year as EV demand weakened across Europe.
Looking ahead, the company is expanding into new growth areas such as energy storage systems and next-generation cylindrical batteries to navigate the slowing EV market. LG Energy Solution plans to increase its US energy storage production capacity to 50 gigawatt-hours by the end of this year, up from the current 30 GWh.
By Herald Business reporter Chung Kyung-su (kwater@heraldcorp.com)
Edited by Korea Herald Business Desk Editor Lee Ji-yoon (jylee@heraldcorp.com)
The original Korean version of this story is available at:
jylee@heraldcorp.com
