NextStar Energy to start EV battery module output in Ontario in fall 2024

NextStar Energy is on track to begin producing electric-vehicle battery modules in Windsor, Ont. this fall, as the company nears completion of its $5-billion battery manufacturing complex that will supply assembly plants in Canada and the United States. 

The Stellantis and LG Energy Solution joint venture said July 19 that construction and equipment installation for the battery-module building is “nearly” finished. Crews are also 90-per-cent done the exterior of the neighbouring cell-production building and have begun installing machinery inside. 

NextStar CEO Danies Lee credited “extensive” planning, the skilled workforce on the job site and support from all tiers of government for the large-scale project staying on schedule. 

“The progress we’ve made this year is a testament to the collective effort, dedication, and expertise of everyone involved, positioning us well for a successful and timely project completion,” he said in a release. 

The plant was the first battery-cell manufacturing site announced for Canada in early 2022, and barring a significant last-minute delay, will be the first to open. Once ramped up to full capacity, the roughly 4.25-million-square-foot (400,000-square-metre) plant will be able to produce 49.5 GWh of battery cells and modules annually. 

In spring 2023, the site became the focal point of a lengthy standoff between NextStar and Ottawa over government funding for the project. The joint venture paused construction on a portion of the site for nearly two months before the parties reached a resolution.  

The plant is expected to receive government production subsidies of up to $15 billion. 

NextStar built its first sample battery module in Windsor in February and plans to start full-scale output in “early” fall. Cell production will follow at an unspecified time in 2025.

Stellantis assembly plants in Brampton and Windsor, currently being retooled to produce a mix of battery-electric, hybrid and internal-combustion engine vehicles on flexible lines, will source batteries from the new plant. The automaker said retooling projects at both plants are “on track” but would not specify completion dates.

Following contract talks with the automaker last fall, Unifor said the Windsor Assembly Plant is expected to return to a three-shift operation in 2025 following the retooling. The union that represents about 8,700 hourly workers at the two assembly plants added that the Brampton Assembly Plant will reopen, at latest, in the fourth quarter of 2025. 

Unifor President Lana Payne told Automotive News Canada on July 18 that excitement is building for electrified-vehicle output in both cities. Work on the Windsor retooling is “full speed ahead,” she said, as is work in Brampton, “to this point.”

In addition to the Canadian sites, the joint venture battery plant is also slated to supply Stellantis assembly plants in the United States. 

NextStar said hiring in Windsor is ongoing. The company has brought on 325 of the 2,500 needed to staff the plant so far, it said.