NextStar Energy began producing batteries for energy storage systems, or ESS, in late November. LG Energy Solution said it plans to run the Canadian plant this year as a production hub to target the North American ESS market.
The company is expected to benefit from improved profitability because it will receive investment subsidies from the Canadian government on its own, as well as subsidies equivalent to the U.S. Advanced Manufacturing Production Credit, or AMPC.
LG Energy Solution said the two companies will keep their partnership intact after the deal. Stellantis will continue to receive electric vehicle batteries from the Canadian plant as previously planned even after selling its stake.
With the acquisition, LG Energy Solution will operate three ESS production bases in North America, following its plants in Holland and Lansing, Michigan. It plans to nearly double ESS production capacity by the end of this year to 60 gigawatt-hours globally, including more than 50 GWh in North America.
NextStar Energy is in stable mass production and plans to more than double ESS battery output this year.
Chief Executive Officer Kim Dong Myung said the Canadian site strengthens the company’s growth foundation in North America. “We will not only respond quickly to surging ESS demand, but also secure additional North America-based customers and build our position to play a key role in the EV industry,” he said.
* This article has been translated by AI.
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