Samsung made lots of EV batteries in the US, but it may soon lose a big partner

Samsung SDI, one of the many companies under the Samsung umbrella, happens to be one of the leading battery manufacturers in the world. It makes batteries for everything from smartphones to electric vehicles.

A few years ago, the company joined forces with a major auto manufacturer to make electric vehicle batteries for their various brands. It appears that this partnership might be running out of road.

Samsung announced back in 2021 that it was entering into a joint agreement with Stellantis to make EV batteries. A factory was then set up in Indiana where these batteries were made that were then used in the EVs of the many brands under Stellantis.

Stellantis was formed after the merger of Fiat Chrysler and PSA Groupe. It owns some very well known global auto brands including Fiat, Jeep, Dodge, Chrysler, Citroen, and Maserati.

The partnership appeared to have had a good start, as it was announced in 2023 that Samsung and Stellantis will build a second EV battery manufacturing plant in the United States.

A lot has changed in the EV industry since then, particularly for Stellantis, as it announced more than $26.5 billion in writedowns this week. The company's bet on EVs hasn't paid off and Stellantis is now reportedly scaling back its EV ambitions significantly.

Bloomberg is now reporting that Stellantis wants to leave its US EV battery joint venture with Samsung SDI. The exit could turn out to be very costly for Stellantis, so it may decide to sell its stake in the joint venture to a third party.

Whatever it decides, Samsung SDI probably won't have much to worry about, as it's likely that it would find some takers for US-based EV battery manufacturing capacity.