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SEOUL: Troubled automaker Stellantis is reportedly looking to exit a joint venture with South Korea’s Samsung SDI to manufacture electric vehicle batteries in the United States.

The companies pledged in 2022 to pour billions of dollars into building batteries through jointly owned StarPlus Energy, capitalising on surging enthusiasm for planet-friendly electric vehicles.

But Stellantis—which owns popular brands like Jeep and Fiat—is now mulling options to cut its losses as it confronts gloomier than expected projections, Bloomberg reported on Tuesday evening.

“We are continuing to have collaborative discussions with Samsung on the future of our StarPlus Energy joint venture,” Stellantis said in a statement.

Samsung offered no further comment on Wednesday, referring AFP back to the earlier statement from Stellantis.

The StarPlus Energy venture would make electric vehicle batteries at two massive plants based in the US city of Kokomo, Indiana. 

Electric vehicle demand has been particularly soft in the United States—a key Stellantis market—where President Donald Trump’s administration has wound back policies designed to stimulate the market. 

Stellantis last week reported a $26 billion hit after writing down the value of its EV operations, conceding it had overestimated sales.

The company was formed in 2021 through a merger of France’s PSA Group and Italian-American company Fiat-Chrysler.