By Heejin Kim and Gilles Guillaume
SEOUL, Feb 6 (Reuters) – South Korea’s LG Energy Solution said on Friday it plans to buy the 49% stake held by Stellantis in their battery joint venture in Canada for a nominal amount of $100.
The move comes as some automakers are scaling back their electric-vehicle plans in response to the policies of the administration of U.S. President Donald Trump and due to fading demand.
Stellantis and LG had announced a major investment in the joint venture in 2022, as part of the carmaker’s ambitious electrification strategy. But Chrysler parent Stellantis, like other automakers, has been retreating from its EV ambitions.
More than C$5 billion ($3.65 billion) has been invested in the facility to date, LG said in a statement.
LG Energy Solution launched a series of battery joint ventures with major automakers in North America during the administration of former President Joe Biden, which promoted EV adoption. The company is now bearing the brunt of a major policy shift under the Trump government, which scrapped the $7,500 consumer tax credit for EV purchases.
Last year, LG Energy Solution agreed with General Motors to buy the latter’s stake in their joint venture battery plant in Lansing, Michigan.
The South Korean battery company is grappling with the fallout from the cancellation of major battery contracts including a multi-billion dollar deal with Ford.
($1 = 1.3688 Canadian dollars)
(Reporting by Heejin Kim in Seoul and Gilles Guillaume in Paris; Writing by Hyunjoo Jin; Editing by Ed Davies)