Executive Summary
Stellantis recorded a €22.2 billion (about $26.2 billion) charge as it resets its electric-vehicle strategy and sold its 49% stake in the NextStar Energy battery joint venture to LG Energy Solution for $100. The moves reflect a pivot toward a broader mix of internal-combustion, hybrid, and electric powertrains, alongside a leaner, resized EV supply chain.
Financial Breakdown of the Charge
- €14.7 billion: Canceled products, platform impairments, and reduced volume/profitability for ongoing EV products.
- €2.1 billion: Resizing the EV supply chain and rationalizing manufacturing capacity.
- €5.4 billion: Company operations, including costs tied to vehicle-quality shortcomings.
Strategic Shifts in Product and Investment
- Adopting a “freedom of choice” approach—expanding offerings across ICE, hybrid, and EV to better match demand and improve near-term unit economics.
- Cancellation of EV products that could not reach profitable scale, including the battery-electric Ram 1500 pickup.
- Rebalancing capital from the 2021 EV blueprint toward near-term profitable products and capacity.
- Commitment of $13 billion in U.S.-focused investment over four years and plans to add more than 5,000 jobs.
Battery JV Exit and Facility Implications
- Stellantis sold its NextStar stake; LG Energy Solution now fully owns the Windsor, Ontario plant.
- LG Energy Solution to utilize up to 49.5 GWh annual capacity for lithium iron phosphate energy storage batteries, supporting a push to exceed 60 GWh ESS capacity in 2026 (with more than 50 GWh in North America).
- Stellantis cites undisclosed favorable terms that help secure future battery capacity when its EVs can use it.
- Stellantis remains in battery manufacturing via the StarPlus Energy plant with Samsung SDI in Indiana.
Recent Performance Indicators
- Shipments rose 43% year over year in the fourth quarter of 2025 across Stellantis brands.
- Combined sales of the Ram 1500 with a Hemi V-8 and a refreshed Jeep Cherokee hybrid contributed over 30% of that growth.
Industry Context
- Automakers are reassessing EV timelines and costs: GM expects to recoup a $1 billion JV investment after shifts; Ford and SK On restructured JV ownership; Honda recorded a $1.7 billion EV-related write-off.
- Stellantis’ €22.2 billion charge is among the largest tied to an EV recalibration.
Outlook and Milestones
- Electrification remains central long term; Stellantis is keeping options open through ongoing partnerships and capacity access agreements.
- Full-year 2025 results due Feb. 26; Investor Day on May 21 will outline the rebalanced product roadmap and supply chain strategy.
