LG Energy Solution has officially opened its first battery manufacturing plant in Canada, positioning the facility as a key hub for batteries used in energy stroage systems across North America.
The South Korean battery-maker said Friday it held a grand opening ceremony for the plant, run by its Canadian manufacturing subsidiary, NextStar Energy, in Windsor, Ontario, Thursday.
The ceremony invited senior officials from both countries, including Ontario Premier Doug Ford, Canadian Industry Minister Melanie Joly, South Korean Industry Minister Kim Jung-kwan and LG Energy Solution CEO Kim Dong-myung.
At the opening ceremony, Minister Kim highlighted the longstanding relationship between the two countries, stressing that Canada was a longtime friend who stood by Korea during difficult times.
"It is particularly meaningful that the NextStar Energy plant — an important symbol and milestone of industrial cooperation between the two countries — has been built in Ontario, one of the regions that sent troops to defend the freedom and people of Korea," he said.
Canadian Industry Minister Joly said the project strengthens Canada's ambition to become a global hub for advanced battery manufacturing, and builds on the MOU between the two countries on future mobility collaboration.
“This new center of advanced battery manufacturing will accelerate our leadership in next-generation vehicles by powering the cars we build, reinforce the strength of our energy grids and develop the strategic technologies our partners and allies rely on,” she said. "Canada is not just participating in the future of mobility, but we are shaping it."
Spanning about 390,000 square meters, the plant produces lithium iron phosphate battery cells for ESS used in artificial intelligence data centers to municipal and provincial power grids, as well as e-commerce and technology infrastructure.
Production kicked off in November last year, and the facility has since produced over one million battery cells, supporting the rapidly rising demand within North America’s ESS market.
Since its establishment in 2022, more than 5 billion Canadian dollars ($3.66 billion) has been invested in the project. The facility currently employs approximately 1,300 workers, with plans to grow that number to roughly 2,500 as production continues to scale up.
NextStar Energy was originally established in 2022 as a joint venture between LG Energy Solution and automaker Stellantis to produce electric vehicle batteries. However, amid an industry-wide slowdown in EV demand, the Canadian facility expanded its portfolio beyond EV batteries to include ESS.
Last month, LG Energy Solution acquired a full ownership of the facility, shifting its focus toward ESS batteries. With the buyout of Stellantis' stake completed, the South Korean company now assumes sole control of the plant, operating it as a wholly owned subsidiary.
Observers say the high-level attendance from both countries at the ceremony highlighted the plant’s symbolic significance for Canada’s emerging battery supply chain.
They noted that Windsor had long been one of Canada’s key manufacturing cities, built around the automotive industry thanks to its proximity to Detroit, once the heart of North American auto production.
However from the mid-2000s, Windsor endured an extended period of economic slowdown amid structural shifts in the broader North American auto sector and the global financial crisis that placed considerable strain on local manufacturing.
In recent years, the city has been seeking to revitalize its economy by shifting toward future mobility sectors such as EVs and battery manufacturing. Amid this shift, the NextStar Energy facility is expected to become a cornerstone of the country’s push to develop an advanced manufacturing ecosystem focused on electric mobility and next-generation energy technologies.
“The opening of the NextStar Energy battery facility is a milestone for southwestern Ontario, creating thousands of local jobs and benefiting workers across our province’s automotive and advanced manufacturing supply chains,” said Premier Doug Ford. “NextStar’s commitment to Ontario workers reflects the hard work our government has done to cut taxes and red tape, attract historic levels of investment and build the most competitive, resilient, self-reliant economy in the G7.”
LG Energy Solution CEO Kim said the company’s decision to take sole control of the facility reflected “absolute confidence” in the facility’s potential.
"As Canada’s first large-scale battery manufacturing facility, NextStar Energy will play a critical role in powering the nation’s next chapter of electrification," he said.
By Ahn Sung-mi (sahn@heraldcorp.com)
