LG Energy Solution said it plans to acquire the 49% stake held by Stellantis in their Canadian battery joint venture for a nominal amount of $100.
Stellantis separately said it would book charges of about €22.2 billion ($26.5 billion) in the second half of last year as it scales back electric vehicle development and undertakes what it described as a strategic shift.
The move comes amid weaker demand for electric vehicles in the United States following policy changes under Donald Trump, whose administration last year scrapped a consumer tax credit for EV purchases.
Stellantis and LG Energy Solution announced plans in 2022 to build a battery manufacturing joint venture in Ontario, Canada, as part of the carmaker’s electrification strategy. LG said more than C$5 billion ($3.65 billion) has been invested in the facility to date.
The plant, known as NextStar Energy, will now focus on producing batteries for energy storage systems, while continuing to supply electric vehicle batteries to Stellantis and other customers in North America, LG Energy Solution said.
“Full ownership of NextStar Energy will enable us to respond swiftly to the growing demand from the ESS market,” said David Kim, chief executive of LG Energy Solution.
LG Energy Solution established a series of battery joint ventures with major automakers in North America during the administration of former US president Joe Biden, which promoted EV adoption. Last year, the company also agreed with General Motors to buy GM’s stake in their joint battery plant in Lansing, Michigan.
The South Korean battery maker has been facing headwinds following the cancellation of several large battery supply contracts, including a multi-billion-dollar deal with Ford.
