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LG Energy Solution to buy Canada JV stake from Stellantis
| USA | economy

LG Energy Solution to buy Canada JV stake from Stellantis

#LG Energy Solution #Stellantis #Battery Joint Venture #EV Tax Credit #Electrification #Chrysler #North America #Canada

📌 Key Takeaways

  • LG Energy Solution is buying out Stellantis's 49% stake in their Canadian battery joint venture for a nominal $100.
  • The facility has already received over C$5 billion ($3.65 billion) in investment since its launch in 2022.
  • Stellantis is retreating from its electric vehicle ambitions due to fading consumer demand and U.S. policy changes.
  • The industry is suffering from the removal of the $7,500 EV consumer tax credit under the Trump administration.

📖 Full Retelling

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.

🐦 Character Reactions (Tweets)

Nerdy Investor

LG Energy Solution just bought the Canadian battery JV from Stellantis for $100. At that price, they're basically making a 'Buy One, Get One Free' offer for electrification. Wonder if it comes with fries! 🍟⚡️

AutoSatire

Stellantis selling its stake in the Canadian battery joint venture feels like breaking up with someone just before a big exam... ‘Good luck with those EV dreams!’ 👋🚗🔋

Political Carma

With electric vehicle enthusiasm cooling faster than a Canadian winter, LG is left to haul the load as others retreat. Maybe they should sell hot chocolate instead? ☕️⚡️

TechnoWhisper

LG Energy Solution's new venture is like a solo karaoke night after everyone's left the party: low expectations but, hey, at least it's electrifying! 🎤🙃🔋

💬 Character Dialogue

malenia: Ah, what a tragedy it is, this gnarled path of financial ruin. I am Malenia, Blade of Micola, and I have never known defeat, yet this EV debacle reeks of decay.
kaneki: Indeed, who is the real monster here? The automakers retreating in fear of an uncertain future, or us, who entrust our hopes to their electric dreams?
skvidward: Did someone say 'uncertain future'? That's just another Tuesday for me. All I wanted was a quiet life playing clarinet, not deciphering corporate zombie apocalypses.
malenia: Silence, cephalopod! The world of man is fraught with peril and ambition, where the victory of honor hangs by a thread of gnarled ambitions.
kaneki: Yet here we are, each of us monsters in our own right, clinging to our ambitions like lifelines in a world turned backwards. What more do we chase?

🏷️ Themes

Automotive Industry, Electric Vehicles, Global Trade

📚 Related People & Topics

Electrification

Process of changing something to use electricity

Electrification is the process of powering by electricity and, in many contexts, the introduction of such power by changing over from an earlier power source. In the context of history of technology and economic development, electrification refers to the build-out of the electricity generation and e...

Wikipedia →

Stellantis

Stellantis

Multinational automotive car manufacturing corporation

Stellantis N.V. is a multinational automotive manufacturing corporation formed in 2021 through the merger of the French PSA Group and Fiat Chrysler Automobiles (FCA), which was itself created by the merger of Italy's Fiat and the US-based Chrysler, completed in stages between 2009 and 2014. Stellant...

Wikipedia →

LG Energy Solution

South Korean battery maker

LG Energy Solution Ltd. (LGES; Korean: 주식회사 엘지에너지솔루션) is a battery company headquartered in Seoul, South Korea.

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📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Amazon stock slides 9% premarket as 2026 capex guidance blows past expectations Gold, silver prices log shaky gains after bruising week 3 reasons why Bitcoin is falling Amazon’s capex plans, Stellantis, Bitcoin’s fall - what’s moving markets (South Africa Philippines Nigeria) LG Energy Solution to buy Canada JV stake from Stellantis Stock Markets Published 02/06/2026, 02:47 AM Updated 02/06/2026, 02:48 AM LG Energy Solution to buy Canada JV stake from Stellantis 0 STLAM -22.35% 373220 -2.53% By Heejin Kim and Gilles Guillaume SEOUL, Feb 6 - 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) LG Energy Solution t...

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