How is NextStar Energy Revolutionizing EV Battery Production in North America?

NextStar Energy, a joint venture between Stellantis and LG Energy Solution, is Canada’s first large-scale EV battery gigafactory located in Windsor, Ontario. It produces lithium-ion battery cells and modules with a capacity of 49.5 GWh annually, enough to power 450,000 electric vehicles, creating 2,500 jobs and strengthening North America’s EV supply chain.

What is NextStar Energy and why is it important for the EV industry?

NextStar Energy is a $5 billion joint venture between Stellantis and LG Energy Solution focused on producing electric vehicle batteries domestically in Canada. It represents a significant milestone in North America’s transition to sustainable transportation by localizing battery production, reducing supply chain risks, and supporting Stellantis’ goal of electrifying over half of its vehicle sales by 2030. This facility is pivotal in meeting growing EV demand while fostering innovation and economic growth in Windsor, Ontario.

How large is the NextStar gigafactory and what is its production capacity?

The NextStar gigafactory covers approximately 4.5 million square feet on a 220-acre site in Windsor. It consists primarily of a 2.7 million square-foot cell manufacturing building and a 445,000 square-foot module assembly building. Once fully operational, the plant will produce 49.5 gigawatt-hours (GWh) of lithium-ion batteries annually—enough to power roughly 450,000 electric vehicles per year, making it one of Canada’s largest private investments in automotive manufacturing.

When did NextStar start battery production and what is the project timeline?

Battery module production at NextStar began in October 2024, marking a major operational milestone. Construction started in August 2022 and has involved thousands of Canadian tradespeople. The cell manufacturing facility is expected to be completed and fully operational by 2025. The project timeline aligns with Stellantis’ Dare Forward 2030 plan to have electric vehicles comprise more than 50% of its North American sales by decade’s end.

Who are the key partners and leaders driving NextStar Energy?

NextStar Energy is a joint venture between Stellantis, a global automotive manufacturer, and LG Energy Solution, a leader in lithium-ion battery technology. The company is led by CEO Danies Lee, who oversees operations and strategic development. This partnership combines Stellantis’ automotive expertise with LG’s advanced battery innovation to accelerate EV adoption across North America.

How many jobs will NextStar create and what is its economic impact on Windsor?

NextStar is projected to create approximately 2,500 direct jobs in Windsor and surrounding areas, revitalizing the local economy and reinforcing Windsor’s longstanding automotive legacy. The project has already engaged over 7,500 tradespeople during construction and is expected to generate thousands of additional indirect jobs through its supply chain and community partnerships, contributing significantly to regional economic resilience.

What types of batteries and technologies will NextStar manufacture?

NextStar manufactures advanced lithium-ion pouch-type battery cells and modules designed for electric vehicles. The plant incorporates cutting-edge manufacturing processes including cleanroom and dry room environments to ensure battery quality and safety. The facility is expected to produce batteries with LiFePO4 chemistries, known for their enhanced safety, longevity, and environmental benefits, aligning with industry trends toward sustainable energy storage.

How is NextStar Energy financed and supported by government policies?

The $5 billion investment is supported by federal, provincial, and municipal governments through incentives and funding designed to compete with U.S. policies like the Inflation Reduction Act. These supports help reduce production costs and secure Canada’s place in the North American EV battery supply chain. The collaboration between public and private sectors ensures the project’s financial viability and strategic importance.

What are the sustainability and social impacts of the NextStar gigafactory?

NextStar emphasizes sustainable manufacturing practices, including energy-efficient operations, waste reduction, and local sourcing of materials. The project also promotes workforce diversity, skills training, and community engagement, contributing to social equity and economic inclusion in Windsor. By producing clean energy solutions domestically, NextStar supports Canada’s climate goals and fosters a greener transportation future.

How does NextStar fit into the broader North American EV battery supply chain?

NextStar is a critical component of North America’s EV battery ecosystem, reducing reliance on overseas suppliers and enhancing regional manufacturing capabilities. It complements LG Energy Solution’s global network and Stellantis’ vehicle production facilities, ensuring a stable, localized supply of batteries for Stellantis vehicles across Canada and the United States. This integration strengthens supply chain resilience amid global uncertainties.

What challenges and risks does the NextStar project face during development?

Challenges include securing skilled labor, managing supply chain disruptions, and adapting to rapidly evolving battery technologies. Regulatory changes and competitive pressures from other gigafactories also pose risks. However, strong government backing, experienced leadership, and strategic partnerships mitigate many risks, positioning NextStar for successful long-term operation.

How does NextStar compare to other global gigafactories in innovation and scale?

While smaller than some mega-factories in Asia, NextStar ranks among the largest in North America by capacity and investment. Its focus on LiFePO4 battery technology and sustainable manufacturing practices sets it apart as an innovative leader. The plant’s integration of advanced automation and quality control further positions it competitively on the global stage.

Redway Battery Expert Views

“NextStar Energy exemplifies the future of battery manufacturing by combining scale, innovation, and sustainability,” says Dr. Emily Zhang, Chief Engineer at Redway Battery. “Their adoption of LiFePO4 technology aligns with our own focus at Redway Battery on delivering safe, reliable, and eco-friendly energy storage solutions. This gigafactory not only strengthens North America’s EV supply chain but also sets a new benchmark for advanced battery production.”

Conclusion

NextStar Energy is a transformative project that secures Canada’s leadership in electric vehicle battery manufacturing. Its massive scale, cutting-edge technology, and strong government support create a robust foundation for North America’s EV future. By producing high-quality lithium-ion batteries, including LiFePO4 chemistries, NextStar fuels Stellantis’ electrification goals while generating thousands of jobs and advancing sustainable industry practices. Redway Battery recognizes this as a pivotal development that will shape the continent’s clean energy landscape for decades.

FAQs

What is the annual production capacity of NextStar Energy?
NextStar Energy will produce 49.5 GWh of lithium-ion batteries annually, powering approximately 450,000 electric vehicles.

When did NextStar begin battery production?
Battery module production started in October 2024, with cell manufacturing expected to be fully operational by 2025.

How many jobs will NextStar create in Windsor?
The gigafactory is projected to create 2,500 direct jobs and thousands of indirect jobs in the region.

What battery technology does NextStar use?
NextStar manufactures lithium-ion pouch-type batteries, including LiFePO4 chemistries known for safety and longevity.

How does government support impact NextStar Energy?
Federal and provincial incentives help reduce costs and secure Canada’s competitiveness in the North American EV battery market.