After taking a $26 billion charge due to overestimating demand for electric vehicles, Stellantis is seriously rethinking EVs. That reportedly includes taking a total bath on its LG Energy joint venture.
The automaker recently announced that it was selling its 49% stake in the NextStart Energy JV, established in 2022 with LG to build an EV battery plant in Ontario.
Stellantis CEO Antonio Filosa said the sale is a “smart, strategic step that supports our customers, our Canadian operations, and our global electrification roadmap.” The company also said it would remain a customer of NextStart. What it didn’t say was how much it sold its stake of the company for, and that may be for good reason.
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According to The Detroit News, Stellantis sold its stake to LG Energy for just $100. That’s a good deal for a plant that’s drawn $5 billion Canadian dollars (or about $3.7 billion) in investment.
The Windsor, Ontario plant currently employs more than 1,300 workers, but it expects to have 2,500 employees once it gets up to full capacity.
Upon the completion of this acquisition, LG Energy will operate four stand-alone facilities (LG Energy Solution Michigan Holland, LG Energy Solution Michigan Lansing, LG Energy Solution Arizona, NextStar Energy) and four joint venture facilities in the region.
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