Samsung SDI, a leading global battery maker under the Samsung group, may be facing a major change in its U.S. electric vehicle (EV) battery partnership. The company has been producing batteries for everything from smartphones to EVs, including a joint venture with Stellantis.
The partnership began in 2021, when Samsung SDI and Stellantis set up a battery manufacturing plant in Indiana to supply EV batteries for Stellantis’ portfolio of brands, including Fiat, Jeep, Dodge, Chrysler, Citroën, and Maserati. Following initial success, the companies announced plans in 2023 for a second EV battery plant in the U.S.
However, recent developments in the EV industry have affected Stellantis’ strategy. The company reported over $26.5 billion in writedowns this week, reflecting challenges in its EV investments and prompting a significant scaling back of its EV ambitions. Bloomberg now reports that Stellantis may exit its U.S. EV battery joint venture with Samsung SDI, potentially selling its stake to a third party.
While this could be a setback for Stellantis, Samsung SDI is expected to remain well-positioned, as there is likely strong demand for its U.S.-based EV battery production capacity from other partners.
Click Here to get the latest EV news and exclusive updates from EV Mechanica on WhatsApp!