Windsor's NextStar Battery Plant Maintains Operations Despite EV Slowdown and Ownership Shift
Despite significant headwinds in the electric vehicle market and a major ownership restructuring, Windsor's $6-billion NextStar Energy battery plant continues to operate with normal production and hiring activities, according to company leadership.
Ownership Transition and Operational Continuity
Earlier this month, Stellantis announced it would sell its 49 percent equity stake in the Windsor battery facility to joint venture partner LG Energy Solution, granting the Korean company complete control of the operation. Despite this ownership change, NextStar Energy CEO Danies Lee emphasized that daily operations remain largely unaffected.
"With this change in the ownership structure, in terms of operation, I don't see much of a change," Lee told reporters. "Stellantis will remain a customer, but our focus now includes diversifying our customer base within the growing energy storage sector."
Electric Vehicle Market Challenges
The announcement comes during a period of declining electric vehicle adoption across North America. According to S&P Global data, EV sales in Canada fell to less than 10 percent of the overall market through much of 2025, down from a peak of approximately 15.4 percent in 2024. If this trend continues, it could mark the first annual decline in EV sales in a decade.
"It's not a secret that the electric vehicle market is kind of in decline, and it's not growing as much as we forecasted," Lee acknowledged. "Due to policy changes that previously drove EV market growth, we're now facing a major setback."
Lee described the current marketplace as "a struggle for the time being" but expressed confidence in the long-term recovery of EV adoption. "My expectation for the EV market is that with electric vehicle technology becoming more mature and enhanced by affordability improvements, it's a matter of time for the EV market to come back, rather than a matter of if."
Price Parity and Future Outlook
Regarding affordability, Lee projected that electric vehicles could reach price parity with internal combustion engine vehicles as early as 2028. This anticipated cost convergence, combined with technological maturation, forms the foundation of his optimistic long-term outlook for the electric vehicle sector.
Energy Storage Expansion
Despite lower-than-expected electric vehicle demand, the Windsor facility has successfully diversified into the thriving energy storage sector. Last November, the plant began mass production of energy storage system batteries—large-scale lithium-ion battery systems designed to store electricity for data centers, utilities, and other high-demand applications.
Lee identified the proliferation of artificial intelligence as a primary driver behind the mushrooming demand for these energy storage solutions. This strategic diversification provides the Windsor operation with additional revenue streams beyond the automotive sector, helping to stabilize operations during the current EV market adjustment period.
The NextStar Energy facility represents one of Canada's most significant investments in battery technology infrastructure, with its continued operation and hiring activities serving as a positive signal for Windsor's manufacturing sector despite broader industry challenges.
