Stellantis is betting on CATL’s low-cost electric vehicle batteries in collaboration with the European Gigafactory partnership

Stellantis is betting on CATL’s low-cost electric vehicle batteries in collaboration with the European Gigafactory partnership

This partnership will help owners of Peugeot, Fiat, Opel and other brands produce and sell affordable electric vehicles in the car, crossover and SUV segments.



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CATL and Stellantis have signed a memorandum of understanding (MoU) that will see the Chinese battery giant supply the transatlantic carmaker with lithium iron phosphate (LFP) battery cells and modules for electric vehicles manufactured in Europe.

While few details have been announced, the two companies have acknowledged that they are also considering establishing a joint venture with equivalent contributions, which could include a battery factory in Europe.

Stellantis says using CATL batteries will allow it to manufacture “high-quality, durable and affordable electric vehicles” in the passenger car, crossover and SUV segments. The company’s interest and investment in LFP batteries complements its plans to build three giant battery factories in France, Germany and Italy through its Mercedes and TotalEnergies joint venture that will specialize in nickel-manganese-cobalt (NMC) chemistry. These NMC batteries will be used in high-end models.

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“This MOU with CATL on LFP battery chemistry is another element in our long-term strategy to protect freedom of movement for the European middle class,” said Carlos Tavares, CEO of Stellantis. “CATL is the industry leader in this sector, and together with our iconic automotive brands, we will provide our customers with innovative and accessible battery technology while helping us achieve our ambition of net zero carbon by 2038.”

Read: Stellantis and Samsung to build a second battery factory in Indiana

LFP batteries are becoming increasingly popular among low-cost electric vehicles. For example, base versions of the Tesla Model 3 and Model Y use CATL’s LFP batteries. MG also uses LFP batteries as do more premium brands like Xpeng and Nio. China dominates the LFP industry and is expected to produce over 99.5% of global supply this year. Car News Reports.

“We are very pleased to take our cooperation with Stellantis to a new level,” added Robin Zeng, Chairman and General Manager of CATL. “With Stellantis’ long-standing automotive manufacturing expertise and CATL’s advanced battery technology, we believe the partnership will be a critical step in both parties’ journey toward carbon neutrality goals. We remain committed to delivering the most competitive and sustainable solutions to our partners to advance the global energy transition.”




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