The automotive group Stellantis announced on Tuesday the signing of an agreement with the Chinese giant CATL to purchase and then manufacture batteries for its smallest electric cars in Europe.
The two companies intend to develop batteries based on lithium, iron and phosphate (LFP), more durable but less powerful than NMC (nickel-manganese-cobalt) batteries, which equip most recent electric vehicles. CATL, the world number one in batteries, will supply Stellantis’ European factories with LFP battery cells and modules, intended to supply the European production of Stellantis electric vehicles.
Creation of a joint venture
The two companies also plan to create a 50/50 joint venture, sealing a “long-term collaboration between CATL and Stellantis”, with on the one hand “the development of a bold technological roadmap to support the commercialization of vehicles Stellantis electric vehicles”, and on the other hand “the identification of new opportunities to strengthen the battery value chain”.
“The long lifespan and excellent thermal stability of LFP technology will enable Stellantis to market high-quality, durable and affordable electric passenger cars, crossovers and SUVs in segments B and C”, i.e. compact cars. and small family cars, specifies Stellantis.
Volkswagen and Renault are also considering equipping their next economic models with LFP batteries. The American manufacturer Ford, for its part, partnered with CATL to build an LFP battery factory in Michigan, but work was suspended at the end of September due to questions about the profitability of the site once it was operational.