Multinational automaker Stellantis has inked Tuesday a strategic non-binding Memorandum of Understanding (MoU) with Chinese battery giant CATL for LFP battery cells and modules supply in Europe.
MoU details
According to the press release, Stellantis plans to utilize CATL’s LFP battery cells and modules for its European electric vehicle production through a potential 50-50 joint venture.
The agreement indicates a long-term partnership in two primary areas, including the following:
- “Building a bold technology roadmap to support Stellantis’ cutting-edge battery electric vehicles,
- Identifying opportunities to further strengthen the battery value chain”
“This MoU with CATL on LFP battery chemistry is another ingredient in our long-term strategy to protect freedom of mobility for the European middle class. 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.”
Stellantis CEO Carlos Tavares
The companies omitted to share more specific details about the partnership and future endeavors. Nonetheless, the CATL Chairman and General Manager hinted that the collaboration will accelerate both companies’ environmental push.
“We are very pleased to elevate our cooperation with Stellantis to a new level. With Stellantis’ time-honored expertise in car manufacturing and CATL’s advanced battery technology, we believe the partnership will be a decisive step on both parties’ journey towards carbon neutrality goals. We will remain dedicated to delivering more competitive and sustainable solutions for our partners to promote global energy transition.”
Robin Zeng, Chairman and General Manager of CATL
Significance
CATL’s LFP battery offers improved thermal stability and more extended service life. Therefore, this partnership will significantly aid Stellantis in developing “high-quality, durable, and affordable” EV models across the B and C segments in Europe.
It will also aid the multinational automaker in securing the necessary battery supply for its electric vehicle production ramp-up.
Notably, expanding its EV production capacity is crucial for the automaker’s ambition to compete with industry leaders like Tesla and BYD.
Likewise, it can also expand CATL’s customer base and further strengthen its position as the world’s leading battery maker.
Stellantis Dare Forward 2030
Stellantis indicated in the press release its Dare Forward 2030 target to achieve 100% all-electric passenger vehicle sales in Europe and 50% in the US by 2030.
The automaker also aims to hit carbon neutrality across its global operations by 2038.
All these considered, strategic partnerships like the one with CATL are crucial for the company to reach its ambitious goals.
However, both CATL and Stellantis have yet to disclose specific information like supply quantities, potential contract terms, and schedule. It would also be ineteresting to know which models will first use CATL’s LFP battery in Europe.
