LG Energy Solution to buy Canada JV stake from Stellantis

South Korean battery manufacturer LG Energy Solution announced on February 6, 2026, that it will acquire the 49% stake held by Stellantis in their Canadian battery joint venture for a nominal fee of $100. This strategic takeover of the facility, located in Canada, occurs as major automakers retreat from their previous electrification targets due to shifting political landscapes and cooling consumer demand for electric vehicles. The decision marks a significant turning point for the project, which has already seen more than C$5 billion ($3.65 billion) in investment to date. The dissolution of the partnership highlights the growing pressure on the global EV industry following the policy pivot of U.S. President Donald Trump's administration. The scrapping of the $7,500 federal tax credit for EV purchases has significantly dampened market enthusiasm and forced manufacturers to rethink their capital intensive projects. Stellantis, the parent company of Chrysler, is moving to minimize its exposure to the softening sector, mirroring similar retreats by other major industry players who are scaling back production plans. LG Energy Solution is now navigating a complex solo path in North America, absorbing assets that were initially intended to be shared ventures. This acquisition follows a similar pattern for the company; just last year, LG agreed to buy out General Motors' stake in their shared battery plant in Lansing, Michigan. Despite these acquisitions, the battery firm faces severe headwinds, including the recent cancellation of multi-billion dollar supply contracts with other major clients such as Ford, as the industry enters a period of high uncertainty.