MILAN, Nov 21 (Reuters) – Carmaker Stellantis ( STLAM.MI ) and Chinese EV battery giant CATL ( 300750.SZ ) said on Tuesday they had signed an initial agreement for the supply of battery cells and modules for electric vehicles The company (EV) production in Europe.
The two companies said in a joint statement they are also considering the possibility of investing to establish a 50-50 joint venture to support the automaker’s electrification strategy.
According to the agreement, the financial details of which were not released, CATL will supply lithium iron phosphate (LFP) batteries to the Franco-Italian carmaker, owner of brands including Jeep, Peugeot, Fiat and Alfa Romeo.
LFP batteries will allow Stellantis to offer high-quality, durable and affordable EVs in the passenger car, crossover and small and mid-size SUV segments, they said.
Stellantis and CATL said the memorandum of understanding (MoU) announced on Tuesday outlined a long-term partnership between the two groups, including “identifying opportunities to further strengthen the battery value chain”.
“We believe the partnership will be a decisive step in both parties’ journey towards carbon neutrality,” CATL Chairman and General Manager Robin Zeng said.
Stellantis CEO Carlos Tavares said the MoU on LFP battery chemistry was “another link in our long-term strategy to protect mobility freedom for Europe’s middle class”.
For its EV battery needs in Europe, Stellantis is building three factories, in France, Germany and Italy through its ACC joint venture with Mercedes ( MBGn.DE ) and TotalEnergies ( TTEF.PA ), with others following in the region. Since its creation in early 2021 through the merger of Fiat Chrysler and Peugeot manufacturer PSA, it has lined up several deals for the supply of equipment needed for its global EV production.
Reported by Giulio Piovaccari; Prepared by Chizu Nomiyama