Nearly 200 Workers Laid Off at NextStar EV Battery Plant in Windsor Amid Project Adjustments
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Nearly 200 workers at the NextStar EV battery plant in Windsor were abruptly laid off by contractor Sylvan Canada, with no clear explanation for the decision.
NextStar Energy, a $5-billion joint venture between Stellantis and LG Energy Solution, confirmed its operations remain unaffected, calling the layoffs part of 'standard' project adjustments.
The layoffs come amid broader uncertainty in the EV market, including U.S. tariffs and reported slowdowns, raising questions about the project's timeline and workforce stability.
The Windsor plant, Canada's first lithium-ion EV battery facility, aims to employ 2,500 people and produce batteries for 450,000 vehicles annually once fully operational.
Nearly 200 workers at the NextStar Energy electric vehicle (EV) battery plant in Windsor, Ontario, were abruptly laid off this week, according to contractor Sylvan Canada. The layoffs affected 145 millwrights and ironworkers, 45 electricians, and three pipe fitters, with the company citing an unexpected directive to "immediately demobilize" from the project. The workers reportedly had significant unfinished tasks, leaving questions about the reasons behind the sudden decision.
NextStar Energy, a $5-billion joint venture between automaker Stellantis and South Korean battery manufacturer LG Energy Solution, clarified that its own employees and operations remain unaffected. Spokesperson Daniela Ferro described the layoffs as part of "standard" adjustments to align with project needs but did not provide further details on whether the move was temporary or permanent. The company reiterated its commitment to completing the facility, which is set to become Canada's first large-scale lithium-ion EV battery plant.
The Windsor facility, which began construction in 2022, has faced challenges, including a pause in 2023 due to U.S. incentives for EV battery production. This prompted the Canadian federal and provincial governments to pledge $15 billion in tax breaks to retain the project. The plant started producing battery modules in October 2024, with full-scale battery cell production expected to begin this fall. However, the broader EV market has shown signs of slowing, compounded by U.S. tariffs under President Donald Trump, creating uncertainty for similar projects in Canada.
The layoffs have raised concerns among local unions and workers, with some employees reportedly told not to return until midweek. The project's long-term goals include employing 2,500 people and supplying batteries for up to 450,000 Stellantis vehicles annually. Yet, the recent workforce reduction highlights the volatility of the EV sector and the challenges of aligning large-scale industrial projects with shifting market conditions.