NextStar Energy has announced its expanding operations at its electric vehicle battery manufacturing plant in Windsor to include production of energy storage system batteries.
Starting this month, the plant will begin manufacturing advanced battery cells designed to support commercial and grid-scale energy storage solutions.
"NextStar Energy's expansion into energy storage reflects the company's ability to respond and adapt to changing markets," said Danies Lee, Chief Executive Officer of NextStar Energy. "By adding to our portfolio, we are not only demonstrating our resilience and flexibility as a company but also our commitment to sustainable innovation and a lasting footprint here in Windsor."
NextStar Energy is a joint venture between LG Energy Solution and Stellantis and is Canada's first large-scale battery manufacturing facility.
In a release, the company says the energy storage system (ESS) market is rapidly expanding and is expected to grow significantly over the next decade, driven in part by AI data centres and the increasing need for grid stability.
To meet this demand, NextStar is introducing a new battery chemistry, Lithium Iron Phosphate (LFP), alongside its existing Nickel Manganese Cobalt technology. The move will support both the ESS and EV battery markets for its joint venture partner companies LG Energy Solutions and Stellantis.
Chief Operating Officer Brett Hillock says they have the flexibility to produce batteries for energy storage systems.
"We can respond to the market conditions as needed. We're able to produce both simultaneously, or we can do them independently, depending on the market conditions," he says.
Hillock says they currently have 1,050 employees with a target of hiring 2,500 employees depending on market conditions.
"The real change is on the chemistry side, but from a process standpoint, it's pretty much identical for us," he says. "We're continuing to hire 50 to 100 per month, fantastic news for the community, continuing our mission to be the first large-scale battery producer here in Canada."
NextStar has been conducting material testing and equipment calibration in preparation for mass production, which is scheduled to begin in the coming weeks.
The site just off the E.C. Row Expressway and Banwell Road is home to two main manufacturing facilities-the Cell and Module-and nine support buildings, including a recycling centre and safety testing laboratory.
In a statement provided by Ontario Minister Vic Fedeli’s office, it states:
“NextStar continues to make important progress on their $5 billion battery facility in Windsor, with construction now complete on their 4.2-million-square foot-facility and 1,000 workers hired to date. With plans to hire 1,500 more workers, NextStar will serve as an integral link in Ontario’s auto supply chain and as a major employer for the Windsor region.
As they begin to produce energy storage system battery cells, in addition to batteries for EVs, the company is adding to its manufacturing capacity and demonstrating its commitment to lasting growth in Ontario.”