Takeaways

• Stellantis has agreed to sell its 49% stake in the NextStar Energy EV battery joint venture to LG Energy Solution for $100.
• The deal comes as Stellantis resets its EV strategy, taking a €22.2 billion charge amid slower-than-expected EV demand.
• LG Energy Solution plans to reposition the Canadian facility to serve both EV and energy storage system markets.

Stellantis, the parent company of Chrysler, Dodge, Jeep, and Citroën, has announced plans to sell its 49% stake in NextStar Energy, a Canada-based electric vehicle battery joint venture, to its partner LG Energy Solution for $100.

NextStar Energy was launched in 2022 as a joint venture between Stellantis and LG Energy Solution with the goal of building Canada’s first large-scale domestic EV battery manufacturing facility. The plant was designed to support the rapid electrification of the automotive sector, with an annual production capacity of more than 45 gigawatt-hours (GWh).

Since its launch, more than C$5 billion (around USD $3.7 billion) has been invested in the facility. However, according to a filing with South Korea’s Financial Supervisory Service, LG Energy Solution will acquire Stellantis’ stake for a nominal price, effectively giving the battery maker full ownership of the project.

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The stake sale comes alongside a broader reset of Stellantis’ business strategy. The automaker said it will take a €22.2 billion (approximately USD $26 billion) charge as it scales back its electric vehicle plans. Stellantis said the move is intended to better align the company with “real-world customer preferences,” signaling a more cautious approach to EV investments amid slowing demand.

Stellantis’ decision reflects a wider trend across the global auto industry. Several automakers are reassessing large investments made during the early push toward rapid electrification, as EV adoption has grown more slowly than expected in key markets.

Ford, for instance, recently announced a $19.5 billion charge linked to changes in its U.S. EV strategy. The company is also repurposing parts of its battery manufacturing capacity to support a new battery energy storage systems (BESS) business, targeting rising demand from data centers and grid infrastructure projects.

LG Energy Solution said that following the transaction, it plans to reposition NextStar Energy to serve a broader customer base beyond electric vehicles. The company highlighted opportunities in the energy storage system (ESS) market as part of its long-term growth strategy.

The move aligns with LG Energy Solution’s broader plan to reallocate production capacity between EV batteries and energy storage systems. The company aims to increase its global ESS production capacity to more than 60 GWh this year, including over 50 GWh in North America.

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David Kim, CEO of LG Energy Solution, said that full ownership of NextStar Energy would strengthen the company’s ability to respond to shifting market demand.

“Full ownership of NextStar Energy will enable us to respond swiftly to the growing demand from the ESS market and position us to play a key role in Canada’s EV industry by securing additional North American-based customers,” Kim said.

The deal underscores how battery manufacturers and automakers are adapting to changing market realities, balancing long-term electrification goals with near-term economic pressures.

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Source: ESGtoday