Stellantis Sells Battery Joint Venture Stake for $100, Retrenches from Full Electrification

[Company Update] Stellantis has sold its 49% stake in NextStar Energy for $100, giving LG Energy Solution full ownership.

Core Strategic Shift: Retrenchment to Focus on ICE and Hybrid Pathways

Stellantis, facing setbacks in electrification, has halted production of the RAM 1500 electric pickup, delayed Alfa Romeo’s EV models, and scrapped its in-house EV platform development, instead doubling down on V8 engines and high-margin SUVs.

Key Metrics: Windsor Plant to Reach 49.5 GWh Annual Capacity

The joint venture NextStar Energy, located in Windsor, Canada, has received over CAD 5 billion in investment. The facility is set for completion in October 2025, with a planned annual capacity of 49.5 GWh and workforce expansion to 2,500 employees.

Strategic Rationale: Responding to Chinese Cost Pressure and Pivoting to Partnerships

Facing intense cost competition from Chinese EV makers—whose vehicles are over 30% cheaper (e.g., BYD holds a 6.1% market share in Europe versus Stellantis’ mere 0.3% in China)—the group is now partnering with CATL to build a battery plant in Spain and investing in Leapmotor to adopt its low-cost EV platform.