Stellantis and CATL aim to open a battery factory in Europe, paving the way for affordable electric cars
The consortium is planning to manufacture lithium-iron-phosphate batteries, which are significantly cheaper than the competitors' alternatives.
1:09 PM EST, November 21, 2023
Stellantis forms an alliance with CATL, a Chinese battery manufacturer. The company intends to establish a gigafactory in Europe. This venture will not only make the company independent from external suppliers but will also significantly decrease costs.
The specifics regarding the size and exact location of the factories are yet to be decided. Nonetheless, both parties have already signed an agreement illustrating a path to achieving common objectives.
According to Maxime Picat, the Head of Purchasing and Supply Chain at the Stellantis Group, the final steps of their collaboration will be completed in the forthcoming months, revealing more specific details. Manufacturing operations in the factory are projected to commence in three years at the latest.
Lithium-iron-phosphate (LFP) batteries are expected to enable Stellantis to produce efficient, long-lasting, and, notably, affordable electric vehicles. The new Citroën ë-C3, priced at 23,300 euros for the base model, exemplifies this.
CATL is the world's largest battery manufacturer and supplies major car producers such as Tesla, Volkswagen, and Hyundai. Stellantis is slated to be added to their client list soon.
