Stellantis to Leave Battery Partnership with Samsung Due to EV Losses: Bloomberg

• Stellantis reported more than $26.5 billion in writedowns last week, driving the reassessment of its EV strategy
• The automaker is exploring divestment options including selling its stake to a third party, though the process could be expensive and time-consuming
• Stellantis stated it continues to have 'ongoing collaborative discussions' with Samsung on the future of their StarPlus Energy joint venture

Summary: Stellantis to Exit Samsung Battery Partnership Amid EV Retreat

Key Development: Stellantis NV is seeking to exit its U.S. battery joint venture with Samsung SDI Co., marking a significant retreat from its electric vehicle strategy, according to a Bloomberg report citing unnamed sources.

Financial Context: This move follows Stellantis's announcement last week of over $26.5 billion in writedowns, which severely impacted the company's financial position. The automaker is now scaling back its EV ambitions in response to mounting losses.

Companies Involved:

• Stellantis NV (automotive manufacturer)
• Samsung SDI Co. (South Korean battery supplier)
• Joint venture: StarPlus Energy

Current Status:

• No final decision has been made on the divestiture
• Stellantis is exploring various exit options, including potentially selling its stake to a third party
• The company confirmed "ongoing collaborative discussions with Samsung on the future of our StarPlus Energy JV"
• An exit could be both costly and time-consuming

Market Implications: This development signals broader challenges in the EV sector, particularly regarding profitability and the massive capital requirements for battery production infrastructure. Stellantis's retreat from this partnership underscores growing concerns among traditional automakers about the pace and economics of EV transition. The substantial writedown and strategic reversal may prompt investors to reassess other automakers' EV investments and partnerships.

Verification: Reuters could not immediately verify the Bloomberg report, and neither Stellantis nor Samsung SDI provided immediate comment beyond Stellantis's brief statement about ongoing discussions.