On November 4, 2025, NextStar Energy, a joint venture between LG Energy Solution and Stellantis, announced it will convert part of its automotive battery production lines at the Windsor plant in Canada to ESS battery lines, with mass production of LFP batteries set to begin within the year.
This move not only implements LG Energy Solution’s “Dual Growth” strategy, but also signals a broader shift as Korea’s three major battery makers collectively pivot toward the ESS sector.
Against the dual backdrop of surging energy storage demand in North America and slowing growth in the electric vehicle market, this LFP-focused production realignment is reshaping the global battery industry landscape.
The adjustment at the Windsor plant was not a sudden decision. Originally announced in March 2022 with a planned investment exceeding $4.1 billion (US), the joint venture was scheduled to start production in the Q1 of 2024, targeting an annual capacity of over 45 GWh, primarily for electric vehicle batteries. However, during the Q3 earnings call on October 30, LG Energy Solution had already hinted that joint venture plants with automakers might be partially repurposed for ESS applications, with the Windsor facility being a key focus.
This conversion marks a critical step in LG Energy Solution’s energy storage strategy in North America. According to Bernstein’s 2025 Global Energy Storage Report, the U.S. energy storage market is experiencing explosive growth: installations from January to July 2025 reached 23.7 GWh, a year-on-year surge of 57%, with full-year demand projected to exceed 51 GWh, up 50% year-on-year. In contrast, electric vehicle battery demand during the same period was only 141 GWh, growing at just 13%.
The LFP energy storage battery capacity from the Windsor plant will complement the Holland plant in Michigan, which completed its conversion in February and achieved mass production in June. This will boost LG Energy Solution’s total energy storage capacity to over 17 GWh within the year, with a target of reaching 30 GWh by the end of 2026.
Following the earnings call, LG Energy Solution CEO Kim Dong-myung further revealed that global ESS capacity in 2026 could significantly exceed 30 GWh, noting that “automotive battery plants in Poland and Nanjing, China are also under evaluation for conversion.” This suggests a global production layout for its energy storage business — “local production in North America supplemented by bases in Europe and Asia” — strategically aligned with market demands in Europe and the US.
Source: WeChat Official Account——储能派
Disclaimer: The content provided above is intended solely for educational and reference purposes. The original author retains the copyright to the articles, and their reproduction is aimed at facilitating learning and knowledge-sharing. If there are any concerns regarding copyright infringement, please contact us for immediate removal. We value the intellectual property rights of the original creator and encourage readers to engage with the original work.
