Stellantis sells stake in Windsor battery plant to Koreans for $100

Stellantis NV said Friday it sold its 49% share of a Canadian battery factory for just $100, days after the Jeep and Dodge parent disclosed $26.5 billion in electric-vehicle related losses while shifting back toward gas-powered vehicles.

South Korea’s LG Energy Solution now owns 100% of the Windsor, Ontario, battery facility, which was launched in 2022 as a joint venture between the two companies.

The plant currently employs more than 1,300 workers, with LG Energy Solution planning to grow the workforce to as many as 2,500 as production ramps up. Stellantis will continue sourcing EV batteries from the site.

“By allowing LG Energy Solution to fully utilize the Windsor facility, we’re reinforcing its long-term future while securing battery supply for our electric vehicles,” Stellantis CEO Antonio Filosa said. “This is a smart, strategic move that supports our customers, our Canadian footprint, and our global electrification plans.”

Stellantis shares listed in New York fell nearly 25% by early Friday afternoon. Milan-traded shares also slid as much as 25%, hitting their lowest level since the company was formed in 2021 through the Fiat Chrysler–PSA merger. The decline means the latest writedown now exceeds the company’s market capitalization.

Stellantis is among several U.S. automakers absorbing heavy losses after pouring billions into EVs to comply with strict federal emissions standards—amid weaker-than-expected demand from American drivers.

The company has scrapped plans for an electric Ram pickup, dropped plug-in hybrid Jeep and Chrysler models, and scaled back EV output as demand cooled and President Donald Trump moved to roll back greenhouse gas rules. Stellantis had also invested in large North American battery plants that have struggled with low utilization and are now pivoting toward energy storage products, including the Windsor facility.

LG Energy Solution CEO David Kim said the company sees “strong growth opportunities in North America” by establishing a major production base in Canada.

Taking full control of the NextStar venture will “position us to play a key role in Canada’s EV sector by attracting additional North American customers,” Kim said.

Stellantis also operates a battery joint venture with Samsung SDI in Kokomo, Indiana. That plant has faced challenges, including layoffs tied to weak EV demand, and last fall also shifted toward battery storage production. Stellantis previously said it was exploring using the site to supply EV batteries for its European vehicles. No changes to ownership there have been announced. Plans for a second large plant remain on hold.