Stellantis and CATL Partner to Build LFP Battery Factory in Europe

Stellantis is joining forces with China’s Contemporary Amperex Technology Co. Limited (CATL) to establish an electric vehicle (EV) battery plant in Europe.

The proposed joint venture aims to establish a gigafactory in Europe dedicated to the production of lithium iron phosphate (LFP) batteries. LFP batteries are known for their cost-effectiveness, although they are considered less powerful compared to the currently prevalent nickel manganese cobalt (NMC) technology. Discussions between Stellantis and CATL are still ongoing, with a few more months expected to finalize the joint venture plan, according to a report from Reuters.

The LFP batteries produced through this partnership are slated to be integrated into a range of Stellantis EVs in Europe, including the recently unveiled Citroen e-C3. The use of LFP batteries in lower-cost EV models is expected to substantially reduce production costs, potentially lowering the price point of the Citroen e-C3 to around 20,000 euros (C$30,000) for its shorter-range version.

This announcement comes on the heels of Stellantis’ recent $2.1 billion investment in Chinese EV manufacturer Leapmotor, showcasing the company’s commitment to expanding its presence in the Chinese EV market.

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