Seoul: LG Energy Solution Ltd. announced plans to acquire the full stake in its joint venture with multinational automaker Stellantis N.V., transforming the firm into a wholly owned subsidiary.

According to Yonhap News Agency, the South Korean battery maker disclosed in a regulatory filing that it intends to purchase a 49 percent stake in the joint venture, NextStar Energy, from Stellantis by June 30. NextStar Energy was originally established as a joint venture by LG Energy Solution and Stellantis in 2022 in Ontario.

LG Energy Solution aims to develop the new subsidiary into a production hub for its energy storage system (ESS) batteries. Despite the acquisition, LG Energy Solution and Stellantis plan to continue their business cooperation. The automaker Stellantis will receive electric vehicle (EV) batteries produced at the Canadian production line.

"Full ownership of NextStar Energy will enable us to respond swiftly to the growing demand from the ESS market and position us to play a key role in Canada's EV industry by securing additional North American-based customers," stated Kim Dong-myung, chief executive officer of LG Energy Solution, in a release.

The acquisition will result in LG Energy Solution operating three production hubs for ESS batteries in North America, including two existing facilities in Michigan.