"Stellantis said it would be selling its 49 per cent equity stake in NextStar to LG Energy Solution, in a Friday morning statement. Stellantis says it remains a committed customer and will continue to source battery products from NextStar. To date, the companies say roughly 1,300 people are employed at the Windsor plant with a long-term goal of 2,500 having employees."
"This new ownership structure strengthens Canada's position as a leader in battery manufacturing, said Danies Lee, NextStar's chief executive officer. 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. The move comes on the same day Stellantis announced a massive scale back of its electric vehicle ambitions, hammering its shares as automakers pay the price of misjudging the switch to cleaner driving."
LG Energy Solution has acquired full ownership of NextStar Energy by purchasing Stellantis's 49 per cent equity stake in the joint venture. NextStar's Windsor, Ontario plant currently employs about 1,300 people with a long-term goal of 2,500 employees. Batteries produced at the Windsor facility will be prioritized for power grid storage systems rather than primarily for automotive use. The federal government has pledged up to $10 billion in production subsidies to NextStar Energy and the provincial government is providing an additional $5 billion. Stellantis remains a committed customer and will continue to source battery products from NextStar. The ownership change coincided with Stellantis announcing a large scale back of its electric vehicle ambitions, which triggered a sharp decline in its Milan-listed shares.
Read at www.cbc.ca
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