Stellantis is hoping to accelerate its access to affordable automotive batteries in an agreement with battery giant CATL, possibly paving a way towards a joint venture between the companies.
Announcing the signing of a non-binding agreement for the local supply of lithium iron phosphate (LFP) battery cells and modules for the automaker’s electric-vehicle production in Europe, both companies add they are exploring plans to form a 50-50 joint venture as a permanent agreement.
The current agreement builds a technology roadmap to support Stellantis’ battery-electric vehicle production capabilities and attempts to find further ways to strengthen its battery supply chain. This covers supplies of LFP batteries which claim a long service life and high thermal stability at a comparatively low cost, enabling the production of more affordable BEVs from Stellantis including CUVs in the B and C segments.
Stellantis CEO Carlos Tavares, says: “CATL is the industry leader in this sector and together with our iconic vehicle brands, we will bring innovative and accessible battery technology to our customers while helping us achieve our carbon net zero ambition by 2038.”