Stellantis Walks Away From Windsor EV Plant After $26.5B Hit — But 2,500 Jobs May Be Safe

Stellantis has agreed to sell its 49% ownership stake in the NextStar Energy battery plant in Windsor, Ontario, to South Korea’s LG Energy Solution, ending the joint-venture structure announced in 2022. The transaction gives LG full ownership of one of Canada’s largest electric vehicle battery manufacturing facilities while Stellantis continues sourcing battery cells through a long-term commercial agreement.

The move comes after Stellantis announced significant restructuring costs linked to its electric vehicle strategy and changing market conditions. Despite the ownership change, both companies say battery production at the Windsor facility will continue and there has been no announcement that manufacturing operations will stop.

Why Stellantis is leaving the joint venture

Stellantis has been reassessing its electric vehicle investments as demand growth has slowed in several major markets and manufacturers adjust production plans. The company recently disclosed large financial charges related to cancelled or delayed EV programs, supplier compensation and broader restructuring efforts.

Rather than remain an equity owner of the Windsor factory, Stellantis will instead rely on long-term supply agreements for battery cells. This approach allows the automaker to reduce capital commitments while maintaining access to batteries for future vehicle production.

For LG Energy Solution, full ownership provides greater flexibility to manage production, investment decisions and future customer relationships without requiring joint approvals.

What the ownership change means for Windsor

The announcement does not mean the battery plant is closing. Public statements from LG Energy Solution indicate that production will continue and existing operations remain in place.

For Windsor, the facility remains one of Canada’s most significant advanced manufacturing investments. It plays an important role in the country’s effort to build a domestic electric vehicle supply chain, from battery materials to finished vehicles.

The plant was first announced in 2022 and received support from both the Canadian and Ontario governments after lengthy negotiations over production incentives. Since then, construction has been completed and manufacturing activities have steadily expanded.

Industry analysts note that battery factories increasingly serve multiple vehicle programs instead of relying on a single automaker. A supplier operating independently may be able to diversify its customer base if market demand shifts.

What workers and investors will watch next

The immediate focus is whether production continues to ramp up as planned. Unifor, which represents many employees at the facility, has indicated that operations continue under the existing labour agreement and there has been no announcement of workforce reductions tied to the ownership transaction.

Investors will also be watching how Stellantis balances cost reductions with future EV investment. Across the global auto industry, manufacturers are slowing some electrification programs while continuing to invest in battery technology, software and hybrid vehicles.

Meanwhile, LG Energy Solution gains complete control over a strategically located North American battery factory that could eventually supply multiple vehicle manufacturers as demand evolves.

Anyone following Canada’s EV manufacturing sector will likely continue monitoring Windsor because the plant remains one of the country’s largest clean-energy industrial projects. Its long-term success will depend on battery demand, competitive production costs, government policy and the pace of electric vehicle adoption across North America.

For more developments involving the automaker, see our latest coverage of Stellantis’ EV restructuring and market reaction.