NextStar Energy, Canada's first large-scale battery manufacturing plant, has launched a new battery pack production line at its Windsor, Ont., facility to help meet global demand for energy storage systems (ESS).
Expansion adds third production stage
NextStar Energy on Thursday said the expansion adds a third production stage to the plant’s existing battery cell and module operations, allowing the company to integrate battery production from a cell to the finished pack. The investment will also support the growing demand for energy storage systems and expand its product line.
“Adding pack production means we can now take a battery from cell to module or to a finished pack, all here in Windsor,” NextStar Energy chief executive Danies Lee said in a media release. “This expansion reflects our commitment to capitalizing on the rapid growth of the ESS market and is a meaningful step to strengthen Canada’s position in the global battery supply chain as well.”
Shift to ESS amid EV slowdown
Last November, NextStar Energy decided to shift into the ESS market as electric vehicle adoption continued to dip across North America. The $6-billion Windsor facility began mass production last November and had produced one million cells by February.
Large-scale lithium-ion battery systems are used to store electricity for data centres, utilities and other high-demand applications. The proliferation of data centres is driving the demand for ESS batteries.
Strengthening global supply chain position
NextStar Energy said the addition of another production line helps the company boost its position in the global battery supply chain. Stellantis NV in February said it would sell its 49 per cent equity stake in the Windsor battery plant to joint-venture partner LG Energy Solution Ltd. for $100, giving the Korean company full control of the facility.
