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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] LG Energy Solution has decided to delay its investment in its Canadian joint venture, NextStar Energy Inc. The move is seen as a response to challenges in the electric vehicle (EV) market, including temporary demand stagnation, and the ongoing "tariff war" triggered by former President Donald Trump's trade policies.
In a regulatory filing on Wednesday, LG Energy Solution announced that it would extend the investment deadline for NextStar Energy by three years, pushing it to 2028. In 2022, LG Energy Solution had originally planned to establish a joint venture in Canada and invest a total of 17.881 trillion won by this year, but now that plan has been postponed by three years.
NextStar Energy is a joint venture in which LG Energy Solution holds a 51% stake, while Stellantis holds 49%.
Industry insiders suggest that the ongoing stagnation in the EV market, combined with growing uncertainty around tariffs since Trump’s presidency, led to the decision to delay the investment. On March 4, the Trump administration imposed a 25% tariff on Canadian imports, but this tariff was temporarily suspended on items covered under the United States-Mexico-Canada Agreement (USMCA), including automobiles, until April 2.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
