Stellantis Sells Ontario Battery Plant Stake for $100 Amid EV Demand Shortfall
Stellantis NV has sold its 49 percent stake in Canada's first battery gigafactory in Windsor, Ontario, for a mere $100, attributing the move to a significant overestimation of electric vehicle adoption rates in the country. Trevor Longley, CEO of Stellantis Canada, made this announcement at the Canadian International Autoshow in Toronto, emphasizing the automaker's need to realign infrastructure with current market realities.
Market Uncertainty Drives Strategic Shift
Longley stated that Stellantis and other automakers are adjusting their strategies due to unpredictable market conditions and evolving policies surrounding EV adoption. "We were way off on that," he admitted, referring to earlier projections. "We and many other automakers are making adjustments just to align our infrastructure to the demand cycle that's happening, which is different than what we all anticipated a few years ago."
EVs currently account for only a single-digit percentage of Stellantis' sales in Canada, a stark contrast to expectations. Despite this, Longley reaffirmed the company's belief that electrification is the future, predicting that EVs could make up the majority of new vehicle sales by the 2040s.
Financial Implications and Plant Details
The sale to joint-venture partner LG Energy Solution Ltd. of South Korea follows a US$26-billion writedown on Stellantis' EV investments and the cancellation of several EV models. The Windsor facility, which cost over US$5 billion to construct with Stellantis contributing approximately US$980 million, began commercial production last year. However, with EV sales in Canada plummeting from around 18 percent in late 2024 to less than 10 percent for much of 2025, the plant has pivoted to producing batteries for energy storage systems.
These stationary batteries are designed to capture and deploy energy from intermittent sources like solar and wind power, reflecting a broader industry trend toward diversification in the face of sluggish EV demand.
Embracing Hybrid Solutions and Future Innovations
At the autoshow, Stellantis introduced its first conventional hybrid Jeep Cherokee, powered by an internal combustion engine with an onboard battery to improve fuel efficiency. Longley described this as part of a more pragmatic approach to the EV transition, focusing on affordability and consumer preferences. "We're shifting to solutions that consumers are more interested in," he explained.
Additionally, Stellantis plans to launch the RAM range-extended pickup, an EV featuring a new hybrid technology where an internal combustion engine acts as a battery charger. Longley highlighted this model as meeting consumer needs for competitive gas mileage and towing capacity, stating, "This is what we see as the future of electrification, at least in the near term."
In contrast to the Canadian market, EV sales constitute a much larger percentage of Stellantis' overall vehicle sales in Europe, where the company has a joint-venture partnership with Chinese EV maker Leapmotor International BV. This disparity underscores the regional variations in EV adoption and the challenges automakers face in navigating global market shifts.
