Stellantis Exits Battery Partnership with SDI Amid €22 Billion Writedowns

Stellantis is moving to terminate its American battery manufacturing alliance with Samsung SDI, signaling a significant recalibration of the automaker’s approach to electric vehicle development. The decision, first reported by Bloomberg, underscores mounting financial pressures facing the multinational car manufacturer, particularly following substantial restructuring charges announced in recent weeks.

Financial Strain Drives Strategic Pullback in Electric Vehicle Sector

The withdrawal from the joint venture reflects Stellantis’s urgent need to stabilize its financial position after announcing over €22 billion ($26 billion) in writedowns—a stark indicator of losses accumulated across various operational segments. The automotive industry’s challenging EV transition environment has forced Stellantis to reevaluate its capital allocation strategy. Rather than continuing to fund multiple battery initiatives simultaneously, the company is consolidating resources and prioritizing cash preservation to maintain operational stability.

Dissolving SDI Collaboration: A Major Shift in EV Investment Strategy

The termination of the SDI partnership represents one of several measures Stellantis is implementing to realign its electric vehicle portfolio. By stepping back from this American battery venture, the automaker is essentially resizing its EV commitments to match realistic market demand and internal financial capacity. This move suggests that Stellantis believes the current joint venture structure no longer delivers adequate returns on investment relative to the capital required. The decision reflects broader corporate strategy to cut costs and redirect funds toward more profitable or strategically essential operations.

Implications for Battery Supply Chain and Industry Direction

The exit from its partnership with SDI could reshape the competitive landscape of automotive battery production in the United States. Samsung SDI will need to reassess its North American battery strategy, potentially seeking alternative partnerships or adjusting production capacity. For Stellantis, the move highlights the growing divergence between automakers’ ambitious EV announcements and their actual investment capacity—a pattern becoming increasingly common as interest rates remain elevated and consumer EV adoption growth stabilizes. The decision underscores that profitable EV transition remains elusive for many traditional automakers, requiring systematic portfolio optimization and strategic partnerships rather than sprawling capital commitments.