Multinational automaker corporations Stellantis is reportedly reviewing an exit from its U.S. battery joint venture with Samsung SDI. The news comes as LG Energy Solution decided to operate on its own a battery plant it built with Stellantis in Ontario, Canada, underscoring how losses in Stellantis' electric-vehicle division are affecting Korea's battery industry.
Bloomberg reported on the 10th (local time) that Stellantis said last week it incurred more than 22 billion euros in asset impairment losses and, in that context, is discussing a plan to dispose of its equity in StarPlus Energy, the U.S. battery joint venture it established with Samsung SDI, to secure cash liquidity. Stellantis has also mentioned selling its equity in the joint venture to a third party, but no final decision has been made.
Stellantis and Samsung SDI established a battery joint venture in 2021 and built a battery plant in Kokomo, Indiana. The joint venture is operating or building two plants.
Plant 1 has been operating since the fourth quarter of 2024, producing ternary batteries for electric vehicles, and since the fourth quarter of last year has converted some lines to ternary batteries for energy storage systems (ESS). Starting at the end of this year, it also plans to produce lithium iron phosphate (LFP) batteries for ESS at this site. Plant 2 is under construction with a target start-up in 2027.
Earlier, on the 6th, Stellantis sold its entire equity in the joint plant to LG Energy Solution. LG Energy Solution bought Stellantis' 49% equity in the Canadian joint venture NextStar Energy for just $100. Although Stellantis has contributed about $980 million to the venture so far, it was reportedly reflected that it would have to pay penalties if it did not purchase a minimum volume of batteries.
Stellantis also appears to be pulling back from the electric-vehicle battery market in Europe. Automotive Cells, the battery joint venture in which Stellantis invested, said on the 7th it would halt plans to build battery plants in Germany and Italy.