A bad bet on electric vehicles cost Stellantis billions and it appears they're eager to put the past behind them. ' This has led to the sale of its 49% stake in NextStar Energy to LG Energy Solution, a joint venture established in 2022 to create Canada's first large-scale battery manufacturing facility in Windsor.
The plant was originally designed to employ approximately 2,500 people and have an annual production capacity of more than 45 gigawatt hours. 7 billion ($5 billion CAD) into the facility, Stellantis is now selling its stake for just $100.
This move comes as electric vehicle adoption has grown slower than anticipated, with the Trump administration recently eliminating federal tax credits and tariffs complicating things. The company's CEO Antonio Filosa described the move as a 'strategic decision' that supports their customers, Canadian operations, and global electrification roadmap.
LG Energy Solution CEO David Kim echoed this sentiment, stating they see growth opportunities in North America by situating a key production hub in Canada. However, the token amount paid for Stellantis' stake suggests the company may be eager to move on from its past investments in electric vehicles.
This sale marks a significant shift for Stellantis as it looks to reposition itself in the market and focus on more sustainable options. The fact that they're selling their stake for such a low amount highlights the challenges faced by the company in the EV sector.
