Stellantis Weighs Sale of 50-50 Samsung SDI Battery JV Over Mounting EV Losses
Stellantis is exploring divestment of its 50-50 battery joint venture with Samsung SDI after EV losses saddled its electrification unit. The venture, launched in 2022 to build gigawatt-scale cell production capacity for upcoming EV models, has faced cost overruns and delayed first shipments.
1. Exit Strategy Details
Stellantis has initiated discussions to sell its 50% stake in the automotive cells company joint venture with Samsung SDI, aiming to stem losses within its electrification division and reallocate capital to higher-return programs.
2. JV Formation and Operations
The venture was established in early 2022 to build gigawatt-scale lithium-ion cell capacity for Stellantis’s battery electric vehicles, with planned manufacturing sites in Europe and North America scheduled to start operations by mid-decade.
3. Financial Strains
High raw material costs and production setbacks have pushed project spending above initial forecasts and delayed cell deliveries, exacerbating EV unit losses that weighed on Stellantis’s operating margins.
4. Market Implications
A sale of the JV stake could prompt Stellantis to seek alternative battery suppliers, adjust its EV rollout timeline and shift investor sentiment regarding its ability to execute capital-intensive electrification targets.