Stellantis Divests from Windsor's $6 Billion Battery Facility
In a significant development for Ontario's automotive sector, global automaker Stellantis has sold its 49 percent ownership stake in the NextStar Energy battery plant in Windsor to its South Korean partner, LG Energy Solution. The transaction, announced on Friday, February 9, 2026, involved a symbolic payment of $100 for Stellantis's share in the multibillion-dollar manufacturing facility.
Local Economic Leader Hails Move as Positive
Gordon Orr, CEO of Invest WindsorEssex, characterized the ownership transfer as a positive development for the Windsor community. "I wasn't anticipating the announcement, but when I heard it, I thought it was very positive news," Orr stated. "It adds long-term operational certainty in what are very uncertain times. And that's a good thing."
Orr emphasized that despite the ownership change, the two companies will maintain a strategic partnership, which remains crucial for the plant's continued success. The sale reflects broader industry uncertainties, particularly concerning U.S. tariffs and shifting market dynamics for electric vehicles.
Navigating Industry Volatility
"We seem to be a tweet away from some sort of curve ball thrown at us," Orr remarked, highlighting the unpredictable nature of the current automotive landscape. "So without question, very uncertain times, and that doesn't add a lot of comfort to a lot of people."
The transaction coincides with Stellantis reporting a major writedown in its electric vehicle investments globally. According to industry analysts, the move allows Stellantis to better pivot toward areas of stronger market demand in the short term, while LG Energy Solution gains greater flexibility to respond to market changes.
Substantial Economic Impact for Windsor Region
Despite the ownership transition, the NextStar Energy plant has delivered substantial economic benefits to the Windsor-Essex region. Orr noted that the facility has already created approximately 1,300 direct jobs as of the first quarter of 2026, with projections indicating nearly 2,000 additional spin-off positions. The plant represents a capital investment ranging between $5 billion and $6 billion.
"NextStar has been nothing but a success for us," Orr affirmed. The facility recently shifted its focus from electric vehicle batteries to electricity storage batteries, demonstrating adaptability in a changing market.
Expert Analysis on EV Market Dynamics
Sam Fiorani, Vice-President of Global Vehicle Forecasting at AutoForecast Solutions, provided context on the electric vehicle market's evolution. "The auto industry appeared to buy into the EV movement when the enthusiasm was still soft," Fiorani observed. "Government incentives helped a lot. The executives believed this was going to happen and it was going to happen quickly, and the government incentives helped them pay for it."
However, Fiorani noted that incentives have been withdrawn in the United States under the Trump administration and scaled back in Canada and Europe, which has discouraged consumer adoption of electric vehicles. This policy shift has contributed to the current market uncertainty facing automakers.
Strategic Implications for Future Operations
Orr explained that the ownership transfer provides LG Energy Solution with direct access to its global technology manufacturing expertise, enhancing the Windsor plant's long-term stability and capital certainty. "It's long-term stability and it's the capital certainty and it's direct access to all of the LG Energy Solutions across their global technology manufacturing expertise," he said.
The transaction represents a strategic realignment in the rapidly evolving battery manufacturing sector, with implications for Windsor's position as a hub for advanced automotive technology and clean energy solutions.
