Stellantis Could Walk Away from Samsung EV Battery Pact: Reports

Stellantis is considering an exit from its electric vehicle battery joint venture with South Korea’s Samsung SDI in the United States, as it reassesses its EV strategy amid weaker-than-expected market conditions, according to a report by Bloomberg on Tuesday.

The partnership, operated through StarPlus Energy, was announced in 2022, with both companies committing billions of dollars to build EV batteries in the US. The venture planned to supply batteries from two large plants in Kokomo, targeting rising demand for electric vehicles.

However, Stellantis, which owns brands such as Jeep and Fiat, is now evaluating options to limit losses as EV demand has softened, particularly in the US. The automaker said it was “continuing to have collaborative discussions with Samsung on the future of our StarPlus Energy joint venture.” Samsung declined further comment, referring queries to Stellantis’ statement.

Electric vehicle demand in the US has slowed amid policy changes under President Donald Trump’s administration, which rolled back incentives aimed at supporting EV adoption. Stellantis last week reported a $26 billion write-down related to its EV business, acknowledging it had overestimated sales. Stellantis was formed in 2021 following the merger of France’s PSA Group and Fiat Chrysler Automobiles.