CATL and Stellantis have signed a Memorandum of Understanding (MoU) for the local supply of LFP battery cells and modules to power Stellantis’ electric vehicle production in Europe. The pair are also considering a 50/50 Joint Venture (JV) to establish an LFP battery plant. Additionally, the MoU outlines the joint development of a ‘state-of-the-art technology roadmap’ and future battery value chain opportunities.
A Change for Stellantis
The announcements indicated the batteries will be used in ‘passenger cars, crossovers and SUVs in the B and C segments.’ However it did not include any further details on timelines, or supply deal sizes. The majority of Stellantis’ current models use NCM (nickel, cobalt, manganese) chemistry. The company announced an intention to move to LFP chemistry in an earnings call earlier in 2023. It stated a move to cheaper Chinese sourced LFP batteries would help combat increasing costs. So far within Europe the Citron e-C3 is the only Stellantis vehicle to announce the use an LFP battery.
The Stellantis CEO commented, “LFP battery chemistry is another ingredient in our long-term strategy to protect freedom of mobility.” He added “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.”
Further Expansion into Europe for CATL
CATL currently has two European gigafactories, one operational in Germany and a second under construction in Hungary. Both facilities will initially produce NCM batteries in their first phase of operations, but once fully operational are expected to also manufacture LFP. The Hungary plant will have a 100GWh capacity when complete. However, it appears the companies are still deliberating on whether to establish a new JV battery manufacturing facility or use CATL’s existing ones.
Penetration of LFP chemistry into Europe has been slow compared to China and the US. However…
To read the rest of the article, and for full access to our news and insights, log in to our Membership Platform.
If you are not a Member, you can request a trial of the platform:
Image credit: Adobe Stock