Stellantis sells its stake in Windsor EV battery plant to LG

Stellantis is selling its 49 per cent stake in the NextStar EV battery plant in Windsor to joint venture partner LG Energy Solutions, and the automaker is taking a $35.5 billion writedown. Financial filings show Stellantis will receive a nominal fee of $100 for its stake, and NextStar is slated to receive up to $15 billion in subsidies over the next decade.

Stellantis is transferring its 49 per cent ownership of the NextStar electric-vehicle battery plant in Windsor to LG Energy Solutions as the company records a $35.5 billion writedown tied to its earlier EV plans. The automaker described the fee it will receive as nominal, and LG's financial documents show that fee as $100. NextStar is expected to receive substantial government subsidies over the coming decade, and Stellantis said it will remain a customer of the plant. Key points: - Stellantis is selling its 49 per cent stake in the NextStar Windsor battery plant to joint venture partner LG Energy Solutions. - Stellantis announced a $35.5 billion writedown and said its EV plans had been overly ambitious; LG filings state the sale fee was $100. - The NextStar plant is scheduled to receive up to $15 billion in subsidies over the next decade, with roughly two-thirds from the federal government and one-third from Ontario. - Unifor, representing many NextStar employees, expressed a continuing collective-bargaining relationship with LG, and Stellantis said it will remain a NextStar customer. Summary: The sale marks a change in ownership and follows Stellantis’s large writedown tied to its EV strategy. Undetermined at this time.