Stellantis Battery Joint Venture Exit: Stellantis in Talks with Samsung SDI Over StarPlus Energy Stake

Stellantis battery joint venture exit discussions have emerged as the automaker reportedly engages in talks with partner Samsung SDI regarding its stake in the StarPlus Energy battery manufacturing venture in Kokomo, Indiana. According to people familiar with the matter, Stellantis has been evaluating options to divest from the joint venture, although no final decision has been taken and the situation remains fluid. Sources indicate that any divestiture could be both costly and time-consuming, given the scale of investment, capital expenditure commitments, long-term supply agreements, and operational ramp-up obligations embedded within the project structure. One potential route under consideration is the sale of Stellantis’ stake to a third party, which would require alignment on valuation, technology licensing rights, production offtake agreements, and regulatory approvals at both federal and state levels in the United States.
Stellantis responded in a statement, saying, “We continue to have ongoing collaborative discussions with Samsung on the future of our StarPlus Energy JV”, without offering further specifics. The statement underscores that discussions are active but does not confirm a definitive Stellantis battery joint venture exit. The language reflects strategic optionality rather than a binding transaction pathway, indicating that capital redeployment, risk-sharing structures, and long-term battery sourcing security remain central considerations.

StarPlus Energy Investment and Operational Shift

Stellantis and Samsung SDI established the StarPlus Energy joint venture in 2021, committing USD 2.5 billion in investment and projecting the creation of 1,400 new jobs in Kokomo, Indiana. The facility began production in 2024 as part of Stellantis’ broader EV battery manufacturing strategy in North America, supporting localized cell production to reduce logistics costs, mitigate supply chain concentration risks, and enhance eligibility for regional manufacturing incentives. The plant represents a vertically integrated battery supply approach aligned with electrification targets across Stellantis’ passenger vehicle portfolio.

Expansion into Stationary Storage Cells

In addition to supplying electric vehicle batteries, the Kokomo Indiana battery plant has recently shifted part of its production toward stationary energy storage cells. According to one source, the venture has secured several new customers for these storage products, signaling diversification beyond automotive applications. This operational pivot enables improved asset utilization rates and capacity absorption in response to fluctuating EV demand cycles. The shift also reflects broader market convergence between mobility batteries and grid-scale or commercial energy storage systems, where similar lithium-ion cell chemistries can be adapted for different duty cycles and lifecycle performance requirements. This operational adjustment highlights how the Stellantis Samsung JV has adapted to evolving battery demand across mobility and energy storage markets.

Broader EV Battery Strategy Realignment

The reported Stellantis battery joint venture exit discussions follow other strategic changes in the company’s battery partnerships. On February 6, Stellantis announced it was exiting the NextEnergy joint venture with LG Energy Solution in Windsor, Canada.

• In that deal, Stellantis sold its stake to LG for USD 100 while maintaining plans to source electric vehicle batteries from the facility going forward.

This structure indicates a transition from equity participation toward a supply-based commercial model, reducing capital exposure while preserving battery procurement continuity for North American EV production programs.

Developments in Europe and Automotive Cells Co.

A day later, on February 7, Automotive Cells Co., a Stellantis-backed EV battery joint venture in Europe, confirmed it would halt plans to construct battery factories in Germany and Italy. The company also stated it is in discussions with unions at its French operations regarding possible temporary unemployment measures, citing ramp-up challenges in battery manufacturing. These challenges include slower-than-anticipated EV adoption rates, capital intensity of gigafactory scaling, yield optimization complexities in early-stage production lines, and pressure on cell pricing amid global competition.
These developments collectively suggest that Stellantis is reassessing its global EV battery manufacturing footprint, partnership models, and capital allocation priorities. The company appears to be recalibrating between equity-heavy joint ventures and flexible sourcing strategies to balance supply security with financial discipline. While no definitive decision has been confirmed regarding the StarPlus Energy stake, the ongoing discussions with Samsung SDI reflect a period of strategic realignment as the automaker navigates cost pressures, evolving regulatory incentive frameworks, market demand variability, and execution risks inherent in large-scale battery production and localization initiatives.