NextStar Energy CEO Maintains Bullish Outlook on Electric Vehicle Market
The chief executive of Canada's sole battery gigafactory continues to express strong confidence in the future of electric vehicles across North America, even as recent sales figures have shown concerning declines throughout 2025. Danies Lee, CEO of NextStar Energy Ltd., made these remarks during his appearance at the Canadian International AutoShow in downtown Toronto, where he addressed both current challenges and long-term opportunities for the electric vehicle sector.
Production Milestones and Workforce Expansion
NextStar Energy has already achieved significant operational milestones at its Windsor, Ontario facility, having recently produced its one millionth battery cell while simultaneously expanding its workforce to approximately 1,300 employees. The plant represents a substantial investment in Canada's clean technology infrastructure and manufacturing capabilities.
"There are new markets and existing markets, which are growing much faster than we expected," Lee stated during his presentation. He specifically highlighted energy storage systems as an existing market that has exceeded growth projections, while identifying emerging opportunities in areas such as physical artificial intelligence and robotics.
Market Challenges and Strategic Adaptation
Recent data from S&P Global Inc. reveals that electric vehicle sales in Canada dropped to less than 10 percent of the overall automotive market throughout much of 2025, representing a significant decline from the peak of approximately 15.4 percent recorded in 2024. If this downward trend continues through the remainder of the year, as many industry analysts anticipate, it would mark the first annual decrease in electric vehicle sales in a decade.
Despite these market headwinds, Lee maintains an optimistic perspective, pointing to technological advancements that have enabled electric vehicles to achieve performance levels comparable to traditional internal combustion engine vehicles. He acknowledges that affordability remains a significant barrier for many consumers but predicts that electric vehicles will reach price parity with conventional vehicles in North America by 2028.
Partnership Changes and Future Opportunities
The recent decision by Stellantis NV to sell its 49 percent stake in the Windsor battery plant to NextStar's parent company, South Korea's LG Energy Solution Ltd., for just US$100 has raised questions about the automotive industry's confidence in electric vehicle adoption. According to Korean securities filings, Stellantis had invested at least US$980 million in the facility prior to this transaction.
Trevor Longley, Stellantis Canada's chief executive, expressed concerns about the affordability and performance challenges that continue to hinder broader electric vehicle adoption in North America. However, Lee views Stellantis's departure from the joint-venture partnership as creating new opportunities for NextStar Energy, including the potential to supply batteries to additional automakers beyond their original partnership agreement.
"They are much more pessimistic about EVs than before," Lee commented regarding Stellantis's position. "Many OEMs (original equipment manufacturers) are in the same kind of judgment or assessment of the EV market."
Despite this strategic shift, Lee emphasized that Stellantis remains an important customer for NextStar Energy and will continue to purchase batteries from the Windsor facility as needed for its electric vehicle production lines.
Global Context and Technological Flexibility
Lee highlighted that electric vehicles have already achieved substantial market penetration in both China and Europe, suggesting that North America may follow a similar adoption trajectory as technological improvements continue and production costs decrease. He also noted that the Windsor plant maintains the flexibility to produce various battery types depending on economic viability, having already demonstrated this adaptability by shifting some production from electric vehicle batteries to energy storage systems, which utilize different chemical compositions and serve stationary applications.
The executive specifically mentioned humanoid robots as one example of emerging applications that could benefit from advanced battery technology, noting that LG Energy Solution possesses the technical capabilities to support these developing markets.
