Deal reached: Stellantis’ EV battery plant is a go in Windsor

After sitting in limbo for nearly two months, CTV News has learned a deal has been reached by NextStar Energy, the vehicle battery joint venture between Stellantis N.V. and LG Energy Solution (LGES)

A binding agreement has been signed by all parties that secures the future of battery cell and module production in Windsor.

Effective immediately, all construction at the NextStar Energy battery plant in Windsor will resume with production operations planned to launch in 2024.

The plant aims to have an annual production capacity in excess of 45 gigawatt hours (GWh) and will create an estimated 2,500 new jobs in Windsor and the surrounding areas.

The new deal reportedly honours the commitments that were made by the Canadian government to level the playing field with the U.S. Inflation Reduction Act (IRA).

“The IRA fundamentally changed the landscape for battery production in North America, making it challenging to produce competitively priced, state-of-the-art batteries in Canada without an equivalent level of support from government,” said Mark Stewart, Stellantis Chief Operating Officer North America.

He continued, “We are pleased that the federal government, with the support of the provincial government, came back and met their commitment of leveling the playing field with the IRA. This collective effort enabled the deal to close and we are now resuming construction on the site in Windsor. We are very grateful to the governments for their leadership to resolve and bring this deal to fruition, as well as Lana Payne and her team from Unifor for tirelessly advocating alongside us in our shared commitment to protecting thousands of new jobs as we achieve our electrified future propelled by our Dare Forward 2030 strategic plan.”

“We are happy to finally move forward with building the country’s first major battery plant and be a central part of the local battery ecosystem,” said Dong-Myung Kim, president and head of the Advanced Automotive Battery Division of LG Energy Solution.

“Thanks to the agreement and continuous support from the Windsor community, NextStar Energy can now focus on what we do best,” said Danies Lee, CEO of NextStar Energy. “We will soon produce state-of-the-art batteries here in Windsor, and we’re excited to grow and thrive with the community.”

“Oh my gosh. As soon as I heard that this was somehow in jeopardy, it was the biggest weight I think I felt in my time as mayor. But that's behind us now. So let's consider that the past. Let's look forward to the future. And that's the finalizing of construction. Getting that plant open, getting it fitted inside, getting 3,000 people hired, and realizing Windsor's place as the auto-capital of Canada,” said Windsor Mayor Drew Dilkens.

"This is about our kids, our grandkids. This is generational now. I mean, you know, in the manufacturing business, it's been up and down and we all know it's cyclical, you know, it goes up, it goes down. There's high points, there's low points. I've been there 30 years and I've seen this my entire tenure and this today is just wonderful news," said Unifor Local 444 President Dave Cassidy.

Irek Kusmierczyk, MP for Windsor—Tecumseh, and Parliamentary Secretary to the Minister of Employment, Workforce Development and Disability Inclusion, said, “I am delighted to confirm that our federal Liberal government has reached an agreement with Stellantis-LGES and the Province to secure the NextStar Energy Battery Plant in Windsor. Effective immediately, construction will resume on the entire battery plant. Our government is excited to share further details with the community very soon.”

Kusmierczyk continued, “For weeks, I repeated the words: we will have an agreement, and the battery plant will be built in Windsor. Promise made. Promise kept. Jobs delivered. Right here in Windsor—Tecumseh.”

NextStar Energy is one of eight battery plants that LGES has secured in North America in response to its growing EV market.