Stellantis is contemplating leaving its battery joint venture with Samsung as it faces significant losses and struggles in the electric vehicle market.
Stellantis, the automotive manufacturer, is currently facing challenges in the electric vehicle sector, leading to serious financial repercussions. The company reported a net loss of €2.3 billion in the first half of 2025, which is attributed to high prices and being outpaced by competitors in the market. In light of these difficulties, Stellantis is considering a withdrawal from its joint venture with tech giant Samsung, known as StarPlus Energy. This venture aims to develop battery technology crucial for electric vehicle production, but its viability is now under scrutiny.
Bloomberg reported that Stellantis has acknowledged the possibility of exiting the joint venture, prompting further inquiry from the media. In a response to AFP, Stellantis confirmed that discussions regarding collaboration with Samsung are ongoing, yet they did not provide specific details about the future of StarPlus Energy. This uncertainty highlights the challenges the company faces in the rapidly evolving landscape of electric vehicle technology, where collaborations are essential yet fraught with potential pitfalls.
Additionally, Stellantis has recently revealed plans to absorb exceptional charges of €22 billion in its financial results for 2025, indicating that the company has significantly overestimated the demand for electric vehicles, particularly in the U.S. market. This revelation has had a detrimental effect on its stock prices, suggesting that investors are increasingly wary of Stellantis's strategic decisions amid a tumultuous market environment. The situation underscores the criticality of sound planning and forecasting in the competitive automobile sector, particularly as the shift towards electrification accelerates.
