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.