NextStar receives occupancy permit for $5B battery plant

Key Takeaways:

• NextStar Energy’s Windsor battery plant has received its occupancy permit, marking the official completion of construction and moving the facility closer to ramping up production this year.
• The $5-billion project, a joint venture between Stellantis and LG Energy Solution, is Canada’s first large-scale battery manufacturing facility, capable of producing up to 49.5 gigawatt hours annually and creating 2,500 local jobs.
• Construction began in 2022 and involved over 9,000 Canadian trades workers contributing more than 8.4 million hours; the facility includes 11 buildings, including cell and module manufacturing sites, a recycling centre, and a safety testing laboratory.

The Whole Story:

NextStar Energy says construction of its massive Windsor battery plant is officially complete after the facility received its occupancy permit, clearing the way for operations to begin ramping up this year.

The $5-billion project, a joint venture between Stellantis and LG Energy Solution, is Canada’s first large-scale battery manufacturing facility. Once fully operational, it will be capable of producing up to 49.5 gigawatt hours of batteries annually and employ 2,500 people.

Chief executive Danies Lee said the milestone reflects the work of more than 9,000 trades workers who contributed over 8.4 million hours since construction began in 2022.

“This achievement is the direct result of a shared vision, effective partnership, and incredible hard work of everyone involved,” Lee said in a statement Tuesday. “As we transition from construction to operations, I am deeply grateful for the collaboration between our partner companies … and all who have supported our project to be completed safely and on schedule.”

The project was first announced in March 2022, when Stellantis and LG Energy Solution unveiled plans for a major battery production hub in Windsor, aided by billions in federal and provincial incentives. Construction began later that year and proceeded at a rapid pace, even as U.S. tariffs and global supply chain issues raised concerns over timelines and costs.

The 4.23-million-square-foot complex includes 11 buildings, among them two main manufacturing facilities for cells and modules, as well as a recycling centre and safety testing lab. While some non-operational construction continues, the plant itself has been deemed safe for occupancy.

Windsor Mayor Drew Dilkens called the development “a major milestone” for the city, which has staked its economic future on electrification.

“The $5-billion investment has placed us at the forefront of electrification,” Dilkens said. “NextStar Energy is a major component of our unprecedented growth and evolution.”

NextStar says it has already hired more than 950 full-time employees and expects production to begin later this year.