Stellantis weighs exit from Samsung battery joint venture: sources

Stellantis is considering exiting its US battery joint venture with Samsung SDI amid ongoing adjustments to its EV strategy, according to sources familiar with the matter.

The automaker, owner of Jeep and Ram brands, has not finalized a decision, and discussions with Samsung are ongoing.

The potential exit could involve selling its stake to a third party, but the process may be costly and lengthy.

Stellantis confirmed it is in talks with Samsung about the future of the StarPlus Energy joint venture.

The company recently announced it would exit a separate Canadian EV battery joint venture with LG Energy Solution, which involved a buyout for a minimal amount.

Stellantis CEO Antonio Filosa has been reducing investments in EV and battery projects following policy changes and market shifts.

The company is also reassessing its battery investments in North America and Europe amid slower EV demand and policy rollbacks.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Stellantis potential exit could jeopardize a $6.3 billion cornerstone of its U.S. EV plan

StarPlus Energy puts more than $6.3 billion into two gigafactories in Kokomo, Indiana, with plans for 2,800 jobs 1.
Production at the first site is set for the first quarter of 2025 with 33 GWh of capacity, then a second 34 GWh plant could start in early 2027 2.
Indiana is offering up to $115 million in conditional structured performance payments, pending approval by the Indiana Economic Development Corporation (IEDC) Board of Directors 3.
The facilities support Stellantis’ plan to line up about 400 GWh of battery capacity and reach a 50% passenger car and light-duty truck battery-electric vehicle (BEV) sales mix in the U.S. by 2030 2.

Samsung SDI’s energy-storage push gives it an alternative to EV demand

Stellantis is cutting spending on EV and battery efforts, while Samsung SDI is leaning more on energy storage for its U.S. manufacturing.
Samsung SDI America, its Michigan-based subsidiary, signed a deal with a U.S. customer worth well over KRW 2 trillion to supply lithium iron phosphate (LFP) cells for energy storage systems over three years starting in 2027 4.
Samsung SDI will make the batteries at its U.S. manufacturing facility, plus it has shifted some electric-vehicle production lines to energy storage system (ESS) battery lines to match local demand 4.
The shift gives Samsung SDI another outlet for U.S. output, which could lower reliance on Stellantis if EV demand cools and improve leverage in talks.