Stellantis Takes $26 Billion EV Loss, Exits Battery Venture
Published: February 25th, 2026
Stellantis announced a €22.2 billion ($26.2 billion) write-down Thursday tied to a dramatic retreat from electric vehicle investments, including the sale of its stake in a major battery plant for just $100—the largest EV-related charge among global automakers and a stark acknowledgment that the company badly misjudged consumer demand for electric vehicles.
The Italian-American automaker sold its 49% equity stake in the NextStar Energy battery joint venture to partner LG Energy Solution for a nominal fee, handing full control of the CAD$5 billion Windsor, Ontario facility to the South Korean battery maker. Stellantis CEO Antonio Filosa said the charges “largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires.”
Key Takeaways
- Stellantis took a €22.2 billion ($26.2B) write-down — the largest EV-related charge among global automakers
- Sold its 49% stake in the NextStar battery plant in Windsor, Ontario for just $100, handing full control to LG Energy Solution
- The auto industry has collectively taken more than $55 billion in EV-related charges since late 2024 (Ford $19.5B, GM $6B, VW $3.5B, Honda $1.7B)
- Cancelled high-profile EVs include the Ram 1500 electric truck, Chrysler Airflow, and budget Jeep Renegade EV
- LG plans to repurpose the Windsor plant for grid-scale energy storage rather than EV batteries
- Stellantis is pivoting to a “freedom of choice” strategy — pushing hybrids and gas vehicles alongside limited EV offerings
- Shares dropped 25.5% to ~$7.10; no dividend will be paid for 2026
- Q4 2025 shipments jumped 43% year-over-year — driven by gas and hybrid models, not EVs
The largest in a wave of industry losses
Stellantis joins a growing list of automakers writing off massive EV investments, but its losses dwarf competitors. The industry has collectively taken more than $55 billion in EV-related charges since late 2024, according to company filings.
Ford announced $19.5 billion in write-downs in December 2025 after canceling several large EV projects. General Motors followed with $6 billion in charges last month tied to reduced EV production targets. Volkswagen took a $3.5 billion hit in September 2025 for its electric division, and Honda reported $1.7 billion in losses earlier this month.
Similar battery joint venture dissolutions have played out across the industry. GM said in late 2024 it expects to recoup its $1 billion investment in a Michigan plant with LG Energy Solution. In December, Ford and supplier SK On agreed to split ownership of their joint-venture facilities, each taking one plant.
The pattern reflects a fundamental miscalculation across the auto industry about how quickly American consumers would embrace electric vehicles.
Breaking down the charges
Stellantis’ €22.2 billion write-off breaks into three main categories, according to company filings. The bulk—€14.7 billion—covers canceled products, impaired development platforms, and reduced profitability projections for ongoing EV programs. This includes €2.9 billion for product cancellations, €6.0 billion for platform impairments, and €5.8 billion in cash payments spread over four years.
Another €2.1 billion relates to resizing the EV supply chain and what the company called “rationalizing manufacturing capacity,” with €0.7 billion in associated cash costs over four years.
The remaining €5.4 billion stems from operational failures, including significant vehicle quality problems that plagued several Stellantis brands in recent years.
The charges effectively erase a substantial portion of the €30 billion Stellantis allocated toward EVs and electrification in July 2021 under former CEO Carlos Tavares, who departed in December 2024 after company profits fell 70%. That original investment was meant to fund battery technology, EV platforms, and applications like range-extenders across Stellantis’ 14 brands globally.
Canceled and delayed electric models
The write-down reflects the cancellation of several high-profile electric vehicles that Stellantis determined “were unable to achieve profitable scale,” according to company statements. The all-electric Ram 1500 pickup truck, once positioned as a direct competitor to Ford’s F-150 Lightning and GM’s electric Silverado, has been scrapped entirely.
Other casualties include the Chrysler Airflow electric crossover, a planned $25,000 Jeep Renegade EV aimed at budget-conscious buyers, and plug-in hybrid versions of popular models like the Jeep Wrangler 4xe.
The few electric models still moving forward carry significantly higher price tags. The 2026 Jeep Recon, an electric off-roader, will start around $65,000. The Ram 1500 REV—a range-extended electric truck with a gasoline generator—represents a compromise between pure electric and traditional powertrains, acknowledging consumer concerns about charging infrastructure and range anxiety.
“The reset we have announced today is part of the decisive process we started in 2025, to once again make our customers and their preferences our guiding star,” Filosa said in a statement, pointing to what he called “poor operational execution” under previous leadership.
What LG gets from the deal
LG Energy Solution gains full ownership of the Windsor plant, which has annual production capacity of up to 49.5 gigawatt-hours. But the South Korean company won’t be making EV batteries there.
Instead, LG plans to repurpose the facility to produce lithium iron phosphate energy storage system batteries—large-scale batteries used for grid storage rather than vehicles. The company is boosting its global energy storage capacity to more than 60 gigawatt-hours in 2026, with over 50 gigawatt-hours of that in North America.
The Windsor plant will play a significant role in that expansion. LG operates three standalone battery facilities in the U.S.—two in Michigan and one in Arizona—plus four other North American joint venture plants. Taking full control of Windsor gives LG flexibility to pivot toward the faster-growing energy storage market as EV demand cools.
Stellantis said the deal includes “other undisclosed favorable benefits” beyond the $100 purchase price and will secure long-term battery supply for future electric vehicle needs. The automaker remains a joint venture partner with Samsung in the StarPlus Energy battery facility in Indiana.
A pivot to ‘freedom of choice’
Despite the massive write-downs, Stellantis reported some positive sales trends in the fourth quarter of 2025. Shipments jumped 43% year-over-year across its brands, driven largely by traditional and hybrid powertrains rather than pure electric vehicles.
The Ram 1500 pickup with the gas-powered Hemi V-8 engine and the refreshed Jeep Cherokee hybrid together accounted for more than 30% of the company’s year-over-year growth in the quarter, according to company data.
Stellantis is now emphasizing what it calls “freedom of choice”—offering customers electric, hybrid, and traditional internal combustion options rather than pushing heavily toward full electrification. The strategy acknowledges that many buyers still prefer gas-powered vehicles or want the flexibility of hybrids that don’t require charging infrastructure.
The company announced $13 billion in U.S.-focused investment over four years in 2025, adding more than 5,000 manufacturing jobs. Those investments will support what Stellantis describes as “a more efficient supply chain” for electrified vehicle programs—a notably more cautious approach than the aggressive all-electric push of previous years.
Market reaction and financial impact
Stellantis shares plunged 25.5% to around $7.10 following the announcement, reflecting investor concerns about the scale of losses and strategic uncertainty. The company said it won’t pay a dividend for 2026, preserving cash as it works through the restructuring.
While the company showed improved net revenues and industrial free cash flow in the second half of 2025, adjusted operating income took a significant hit from the charges. Stellantis will release full-year 2025 financial results on February 26 and plans to unveil its new product strategy at an investor day on May 21.
For consumers, the shift means fewer affordable pure electric options from Stellantis brands in the near term. Buyers looking for budget-friendly EVs will need to look elsewhere, while those interested in Stellantis vehicles will find more hybrid and traditional gas-powered choices.
The strategic reset positions Stellantis to compete more directly on the powertrains customers are actually buying today, even as it delays the company’s full transition to electric vehicles by several years.
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