[1/2] The Stellantis logo was unveiled at the New York International Auto Show in Manhattan, New York, USA on April 5, 2023. REUTERS/David “Dee” Delgado is licensed
MILAN, Nov 21 (Reuters) – Stellantis (STLAM.MI) plans to build an electric vehicle (EV) battery plant in Europe with the help of China’s Contemporary Amperex Technology (CATL) (300750.SZ), the company’s fourth plant in the region. The European automaker is seeking to build an electric vehicle (EV) battery plant in Europe. Cheaper batteries and more affordable electric vehicles.
The electric vehicle battery plan also marks a further strengthening of the French-Italian automaker’s ties with China after it closed its previous joint venture with Guangzhou Automobile Group Co (601238.SS) last year. Last month, Stellantis announced it was acquiring a stake in Chinese electric vehicle maker Leapmotor (9863.HK) for US$1.6 billion.
Stellantis and CATL announced a preliminary deal on Tuesday to supply lithium iron phosphate cells and modules for the automaker’s electric vehicle production in Europe and said they were considering a 50:50 joint venture in the region.
Maxime Pica, global head of procurement and supply chain at Stellantis, said the joint venture plan with CATL aims to build a giant new plant in Europe to produce lithium iron phosphate batteries.
Compared to nickel-manganese-cobalt (NMC) batteries, another common technology currently in use, lithium iron phosphate batteries are cheaper to produce but have lower power output.
Picart said discussions were ongoing with CATL on a joint venture plan that would take several months to finalize, but he declined to provide details on the possible location of the new battery plant. This will be CATL’s latest investment in the region as the company expands beyond its home market.
European automakers and governments are investing billions of euros to build battery factories in their countries to reduce dependence on Asia. Meanwhile, Chinese battery makers such as CATL are building factories in Europe to produce European-made electric vehicles.
Picart said the deal with CATL will complement the group’s electrification strategy as lithium iron phosphate batteries will help lower production costs in Europe while maintaining production of the ternary batteries used in higher-end vehicles.
LFP cells are suitable for use in low-cost Stellantis electric vehicles such as the recently launched Citroën e-C3, which currently sells for just €23,300 ($25,400). about 20,000 euros.
However, Picart said lithium iron phosphate batteries offer a trade-off between autonomy and cost and will have a wide range of applications within the group as affordability is a key factor.
“Our goal is certainly to grow lithium iron phosphate batteries in many market segments because availability is required in many different segments, whether it be passenger cars or potentially commercial vehicles,” he said.
In Europe, Stellantis, which owns brands including Jeep, Peugeot, Fiat and Alfa Romeo, is building three plants in France, Germany and Italy through its ACC joint venture with Mercedes (MBGn.DE) and Total Energies (TTEF.PA). super plant. ), specializing in NMC chemistry.
Under Tuesday’s agreement, CATL will initially supply lithium iron phosphate batteries to Stellantis for use in its electric vehicles in the passenger car, crossover and small and mid-size SUV segments. (1 US dollar = 0.9168 euros)
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