NextStar Energy CEO Bullish on Electric Vehicle Future Despite Sales Slump
The chief executive of Canada's sole battery gigafactory remains steadfastly optimistic about the adoption of electric vehicles (EVs) in North America, even as sales experienced a notable decline in 2025. Danies Lee, CEO of NextStar Energy Ltd., headquartered in Windsor, Ontario, predicts that EVs will achieve price parity with traditional gas-powered vehicles by 2028, marking a pivotal turning point for the automotive industry.
Plant Achievements and Strategic Pivot
NextStar Energy has already employed 1,300 individuals at its Windsor facility and recently celebrated a significant milestone by producing its one millionth battery cell. Lee emphasized the plant's versatility, noting its capability to manufacture any type of battery that proves economically viable. This flexibility has already led to a strategic shift from producing EV batteries to focusing on batteries for energy storage systems (ESS), which utilize different chemistries and are stationary.
"There are new markets and existing markets, which are growing much faster than we expected," Lee stated during his appearance at the Canadian International AutoShow in Toronto. "The example of an existing market is the ESS and the new market includes physical AI and robots. Everyone is talking about humanoid robots, and LG Energy Solution, our parent company, possesses the technology to support these emerging markets."
Market Challenges and Optimistic Projections
In Canada, demand for EV batteries waned last year as EV sales dropped to less than 10 percent of the overall market for much of 2025, down from a peak of approximately 15.4 percent in 2024, according to data from S&P Global Inc. Should this downturn persist through the end of the year, as many analysts anticipate, it would represent the first annual decline in EV sales in a decade.
Nevertheless, Lee maintains a positive outlook, attributing his confidence to significant technological advancements that have enabled EV performance to rival that of internal combustion engine (ICE) vehicles. While affordability remains a hurdle, he forecasts that EVs will reach price parity with ICE vehicles in North America by 2028. He also highlighted that EVs have already achieved substantial market penetration in both China and Europe, serving as a promising indicator for future growth.
Stellantis Exit and Industry Perspectives
This optimism contrasts with recent developments involving Stellantis NV, which sold its 49 percent stake in the Windsor plant to NextStar's parent company, South Korea's LG Energy Solution Ltd., for a nominal US$100. This move followed an investment of at least US$980 million by Stellantis, as detailed in Korean securities filings.
Stellantis Canada CEO Trevor Longley expressed a more cautious stance, suggesting that the affordability and performance of EVs compared to ICE vehicles will continue to pose barriers to higher adoption rates in North America for the foreseeable future. "They are much more pessimistic about EVs than before," Lee remarked regarding Stellantis. "Many OEMs (automakers) share a similar judgment or assessment of the EV market."
Despite this divergence in outlook, Lee clarified that Stellantis remains a crucial customer for NextStar and will continue to purchase batteries from the plant as needed for its electric vehicles. He also noted that Stellantis's departure from the joint-venture partnership opens up new opportunities, including the potential to sell batteries to other automakers.
In summary, while the EV market faces current headwinds, NextStar Energy's leadership is banking on technological progress and evolving market dynamics to drive a resurgence in electric vehicle adoption, with price parity on the horizon by the end of the decade.
