An ESS is like a big rechargeable battery that can save power when it’s cheap or plentiful and then give it back when needed, such as in cars or for the power grid.
This type of battery uses three metals—nickel, manganese, and cobalt—to store electricity. It’s common in many electric cars because it can hold a lot of charge, but it’s more expensive and relies on mined metals.
LFP batteries use iron instead of nickel or cobalt, so they’re cheaper and safer. They don’t last as long on a single charge as some other types, but they’re popular for stationary storage and some cars.
An energy storage system is basically a big battery that can hold electricity and release it when needed, like in electric cars or to help power the grid during peak times.
An LFP battery is a kind of rechargeable battery that uses iron and phosphate. It’s cheaper and safer than some other batteries, but it can’t store as much energy in the same space.
NCM is a kind of battery that uses nickel, cobalt, and manganese. It can store a lot of power and stays safe at high temperatures, but it costs more than some other batteries.
LIVE
Relationships are at the heart of everything we do,
and we pride ourselves on providing you
with the award-winning satisfaction
you've come to expect from us.
Thank you for rating TD Auto Finance number one
in dealer satisfaction among non-captive,
non-prime lenders with retail credit
for the eighth year in a row.
Contact us today at 1-855-TD-AUTO-1
to learn more about our award-winning satisfaction.
For J.D. Power 2025 award information,
visit jdpower.com slash awards.
Hi, everyone, and welcome to the November 7th, 2025 episode
of the Automotive News Canada podcast.
I'm your host, Greg Laysen,
the digital and mobile editor at Automotive News Canada,
coming to you from just outside Windsor, Ontario,
the automotive capital of Canada.
Today on the show,
I speak with Nexstar Energy CEO, Danny Zlin.
He's here to talk about some big changes
at the joint venture EV battery plant
co-owned by Stellantis and LG Energy Solution
in Windsor, Ontario.
We spoke under embargo back on October 28th,
and we'll hear that conversation later in the show.
But first, a look at some of the top Canadian
automotive stories of the week.
The federal budget released this week
offers little to the Canadian auto industry.
It does not address the future
of the electric vehicle sales mandate or EV purchase rebates.
In terms of manufacturing,
the budget does outline a productivity super deduction,
a set of enhanced tax incentives
covering all new capital investment
that allows businesses to write off a larger share
of the cost of those investments right away.
However, disappointingly to the auto retail sector,
Ottawa will roll back Canada's luxury tax
on planes and boats,
but maintain the levy on vehicles worth more than $100,000.
On the dealer front,
Open Road Auto of British Columbia
has acquired a majority stake
in Ontario's New Roads Automotive Group.
The merger will triple Open Road's footprint
in Canada's largest auto retail market
and expand its portfolio to 37 franchise locations
across the country.
Financial terms of the deal,
which closed November 5th, were not disclosed.
New Road CEO, Michael Croxon,
retains a minority stake in New Road's portfolio
and will stay on to lead
the combined 12-store business unit in Ontario
as president of Open Road Auto Ontario.
Croxon says he had been approached
by a range of large dealership groups
about a sale in the past few years,
but he held off to ensure the company had,
quote, a partner that shares the same values that we do.
And we end in retail news.
When compared with the same month a year ago,
October's new vehicle sales were down 1.8%.
That, according to Derosier Automotive Consultants, Inc.
Despite the dip, the consultancy characterized the sales
as, quote, healthy.
That's because October 2024 provided a tough comparable.
A year ago, October sales were inflated
as many Quebecers rushed to get electric vehicles
before the province reduced EV incentives there.
Quebec posted its highest total sales figures ever
in October 2024.
Derosier managing partner, Andrew King,
says the auto sector continues to waver
as the trade situation shows no sign of being resolved.
Still, in its latest monthly report,
U.S.-based Auto Forecast Solutions
predicts automakers will sell 1.98 million new vehicles
in Canada in 2025.
And that's a look at some of the top Canadian
automotive stories of the week.
Coming up, I'm joined by Nexstar Energy CEO, Danny Lee.
♪♪
Flexible, full-spectrum,
and focused on the future of this great industry.
With over 1 million customers served
and relationships with over 6,100 dealers nationwide,
we pride ourselves on our competitive programs,
digital solutions, and award-winning satisfaction.
We're committed to making it easy to finance a vehicle
and grow your business anywhere, anytime.
Thank you for rating TD Auto Finance
number one in dealer satisfaction
among non-captive, non-prime lenders with retail credit
eight years in a row.
With your continued support,
we were also recognized as number one
in dealer satisfaction among non-captive prime lenders
with retail credit in the J.D. Power 2025
Canada Dealer Financing Satisfaction Study.
Contact us today at 1-855-TD-AUTO-1
to find out how we can support you
every step of the vehicle buying journey.
For J.D. Power 2025 award information,
visit jdpower.com slash awards.
Welcome back to the Automotive News Canada podcast.
I'm your host, Greg Laysen.
We now hear my October 28th conversation,
which was had under embargo at the time
with Nexstar Energy CEO, Danny Lee.
Danny, thanks for joining me on the podcast this week.
My pleasure too, thanks for having me.
It's great to have you.
Let's start here.
I know you bring some breaking news and we'll get to that,
but first, congratulations on getting your occupancy permit
a few weeks back.
Why don't you tell our listeners
what exactly that occupancy permit means for Nexstar?
Well, it means a lot to us
because this is a wrap-up of our three years of journey
from the groundbreaking all the way
through the completion of the cell and the model building.
So after three years of effort,
this is the very first and the biggest
lithium-ion battery plant being approved by the authority.
So we are finally in a place where we are ready
for the start of this scale of lithium-ion battery,
basically here in Windsor.
So when it comes to electric vehicles,
what's being made there now, as you and I speak?
What is the activity that's going on there?
What is being produced now that you have that permit?
Well, actually, our next step after building permit
is since we are now working on installing
the older machinery and the equipment,
which is imperative to start the production
for the lithium-ion battery.
Basically, we have not started
our cell and electrode production yet
because we are in a high year to completing
the installation of this machinery and the equipment
right now, which will be finalized by early November.
So once there's completion of this installation
of the equipment and machinery,
we are going to right jump into the mass production
of the batteries there.
So it happens that quickly.
So we could see batteries being produced
by the end of 2025, is that the goal?
Or when might the first usable batteries
that could be put into an electric vehicle,
when will those roll off the line for the first time?
Well, even earlier than end of 2025,
we are going to start production for the battery
from early November.
That's what we are shooting for at this moment.
So, well, basically while the construction
for the building is going on,
in parallel, we also installed our machinery
and the equipment too at the same time.
That's why those two different key activity
has been moving in parallel.
Where will these batteries head?
Which vehicles will this plant supply
when it comes to electric vehicle batteries?
Well, part of my breaking news is
that when we start the production,
we are going to start with a battery cell production
for what is called energy storage system application.
So initially we planned to start with a battery for the EV,
but everyone knows that currently the market for the EV
is going through what is called a cat's limb.
All the slowdown in this demand and the delay
in terms of the launch of EV.
So that's why we are expecting this prolonged slowdown
of the EV market.
We took quick action to explore the new market opportunity,
which is the energy storage system right now.
So we are going to start our production targeting
this new market, which is energy storage system first.
And then when the cat's limb is over
and the demand is coming from the EV sector,
then obviously we have a flexibility
to deal with those demands from the EV too.
So what is the demand like
for energy storage systems right now?
Is it sort of what you expected the EV market
to be at this point?
I mean, will it keep people working there?
I just wonder what the demand is like
and what it means for the plant in terms of production.
Well, when it comes to demand from the energy ESS market,
well, maybe everyone knows about the latest AI boom
and the battery is a part of this AI supply chain too.
So the massive amount of data center,
many of AI company has been investing.
That's where this refresh the demand is coming
for the energy storage system.
So we already have a pretty good demand
for the ESS in the marketplace,
but the latest addition of this AI data center demand
is fueling this ESS demand even further.
Is that demand in Canada or the United States?
Well, it's right now coming from the United States.
However, we expect that Canada also have a good demand
for the ESS too.
So we start with a demand from the US,
but we expect a pretty,
since when it comes to the data center,
that has been built in Canada too.
And we have a lot of solar, wind power,
power generation too,
where the ESS being used for the energy storage purpose.
So we have a market for ESS here in Canada too,
but obviously the market in the US
is 10 times bigger than Canada.
So we address the market in the US first.
I have to ask this question.
We know, everyone knows that Nexstar,
Stellantis, LG Energy Solution
received some government funding for the plant,
the $5 billion plant.
And it was based on the battery output there.
Does this new energy storage system output,
does that still help the plant qualify for federal funding
based on what was agreed to about a year,
year and a half ago?
Yes.
Okay, okay.
So it satisfies what was outlined by the federal government.
Right.
Okay.
I wanna get back to the electric vehicle market.
Obviously it's the Automotive News Canada podcast.
So we wanna talk a little automotive.
Does that plant in the future have the ability
to build a variety of battery types?
And I wanna start here first.
Would you be able to build batteries
for hybrid vehicles in Windsor?
Given that's where the market's going,
last quarter that was publicly reported
60% of new vehicle registrations were,
sorry, hybrids were up 60% last time they were counted.
Do you have the ability to build hybrid batteries
in that plant?
My short answer is yes.
Okay.
There are different types of EV,
like a hybrid, plug-in hybrid,
as well as battery electric vehicle.
So the battery we can produce there
can cover those three different types,
the demand from the three different types of EV.
And we have a flexibility to respond to the demand
from the other application than EV,
like in this case, energy storage system.
So we have pretty good flexibility
in terms of our process,
as well as the technology we apply to.
I know the plant had planned on building
nickel manganese cobalt cells for electric vehicles.
And now I believe this is the LFP version
for energy storage systems, is that correct?
That's correct.
So my follow-up to that would be,
does this plant have the ability
to sort of change with the EV market
if in the future electric vehicles
go to the LFP battery?
Will it have the ability to build those in the future?
Okay, my short answer is yes.
Obviously, there's pros and cons of the LFP battery
for the purpose of EV.
For example, LFP, this technology,
a kilowatt per kilogram,
the weight of this LFP is almost twice
as heavy as NCM technology.
So for the EV purpose,
the weight of the battery is not the best interest
of the EV, but still doable.
But the affordability of LFP is a big thrower
from the EV perspective.
So EV manufacturers, they try to keep the good balance
between affordability and performance of the LFP.
But I mean, from my perspective as a battery manufacturer,
LFP, NCM, those are something that we can manufacture
even at the same time.
There are those critics who say,
what happens when the industry goes
to solid state batteries
and what Windsor is building now is obsolete.
Is that even a realistic thing to say
or can this plant always adjust
and be able to make whatever the electric vehicle market
and its automakers demand?
Well, obviously we need to see when the solid battery
is at the level of mass production,
but conceptually looking at the solid battery
being under discussion,
if it is ready for use from my perspective,
next energy can partially accommodate those technology
with the current equipment, available equipment.
But obviously there should be,
there needs to be some investment
where the certain feature of the solid state battery
cannot be entertained by the currently available machinery
and the equipment that we have right now.
So, well, there are certain machinery
and equipment that we can reuse for the solid battery,
but there are some investment necessary too.
So let's get back to the plant as it is now,
going to start producing ESS batteries.
What does that mean for the workforce?
I think you've got about 1200 hired right now.
Does that mean you stay at 1200,
add or subtract from that number?
What does this mean for the workforce?
Well, basically whatever types of battery we are producing,
regardless of being producing for EV or RFP,
from the headcount perspective and the job perspective
is very similar.
Okay.
There's a little difference.
So do you add to what's there now
or how long does the plant run at
about the 1200 folks that it's hired right now?
Do you see adding shifts at any point
or what are we running at here moving forward?
We are running at full shift from the very beginning.
Okay.
One shift?
Full shift.
Oh, two shift.
We are running 24 seven.
That's how we run the battery plant.
We started with one line,
but we have a plan to add more lines.
So with the addition of a new line down the road,
we are going to obviously,
it should come through with additional manpower
to support this additional production.
Last question.
What's the future of this plant?
On solid footing,
how would you characterize
the Nexstar Energy Plant's future in Windsor?
Well, we start as a EV battery manufacturer,
but the latest problems in the marketplace
enable us to diversify our product portfolio.
So we have a capability and a flexibility
to produce different types of battery
for the different applications.
So we are going to move ahead
with different types of battery,
not only for the EV, but also ESS too.
And at the same time,
those are not the only two applications we can serve.
Given the fact that the need for the battery
is coming more and more from the different user cases,
so I believe that we have more opportunity
to serve many of the different dynamics of the marketplace.
Did the Brampton decision play into this,
or were these decisions to adjust course already made
prior to Stellantis moving the Jeep Compass work
from Ontario to Illinois
and moving it from an electric vehicle
to a gasoline powered version?
Was this plan of action in Windsor
already set before any of those decisions were made?
I cannot speak for Stellantis,
but I think the decision made by Stellantis in Brampton
has nothing to do with our operation.
So, I mean, there's not much I can talk about this.
I understand, I appreciate.
Danny, thanks for this.
We haven't spoken before.
I'm glad we got to touch base.
Congratulations on getting things up and running.
I know it's been a long, almost three years now.
So, thank you for joining us and giving us the update.
Thank you.
Thank you, Greg.
I'd like to thank Danny Lee for his time.
If you'd like to be a guest on the show,
have a suggestion or simply want to comment,
email me at glason at autonews.com.
And remember, you can listen to all our previous podcasts
on Spotify, iTunes, Google Play,
or on our website, automotivenews.ca.
Just scroll to the podcast hub
in the middle of the homepage.
And don't forget,
you can follow Automotive News Canada on X,
where we're at, Auto News Canada.
And you can find me there too, under at G Lason, A-N-C.
And finally, look for us on LinkedIn.
Just search for Automotive News Canada.
That does it for this episode
of the Automotive News Canada podcast.
We hope you'll join us next time.
So long, everybody.
Thank you.
About this episode
A conversation with Nexstar Energy CEO Danny Lee reveals significant updates on the new EV battery plant in Windsor, Ontario, co-owned by Stellantis and LG Energy Solution. Lee discusses the plant's shift to producing energy storage systems due to a slowdown in EV demand, while confirming that the facility will still be capable of manufacturing batteries for various vehicle types, including hybrids. The episode also covers recent Canadian automotive news, including a federal budget that lacks support for the EV sector and a major dealership merger in Ontario.
Federal budget breakdown; OpenRoad buys into NewRoads; October sales. Plus, NextStar CEO Danies Lee talks about why the Stellantis-LG Energy Solution joint venture is now making energy storage systems instead of EV batteries in Windsor, Ont.
