Biplab Das 
Carmaker Stellantis and Chinese EV battery titan CATL announced a preliminary agreement on Tuesday for the supply of battery cells and modules, marking a significant move in Stellantis’s electric vehicle (EV) production in Europe. The companies are also exploring the possibility of a 50-50 joint venture to bolster their electrification strategies.
Battery supply deal
Under the agreement, CATL will provide lithium iron phosphate (LFP) batteries to Stellantis, known for brands like Jeep, Peugeot, Fiat, and Alfa Romeo. The financial specifics of the deal were not disclosed. The use of LFP batteries is anticipated to empower Stellantis in delivering durable, high-quality, and cost-effective EVs across various segments, including passenger cars, crossovers, and small to medium-sized SUVs.
Long-Term collaboration and joint venture possibilities
Stellantis and CATL outlined a comprehensive memorandum of understanding (MoU), emphasizing a sustained collaboration and exploring opportunities to fortify the battery value chain. The companies are contemplating a potential 50-50 joint venture to further support their electrification pursuits.
CATL Chairman and General Manager Robin Zeng expressed confidence that the partnership would be a pivotal move for both entities in achieving carbon neutrality goals. Stellantis CEO Carlos Tavares hailed the MoU on LFP battery chemistry as a strategic element in their long-term plan to ensure the mobility freedom of the European middle class.
Strategic gigafactories and global EV production
Stellantis is actively addressing its EV battery requirements in Europe through the construction of three gigafactories in France, Germany, and Italy, facilitated by its ACC joint venture with Mercedes and TotalEnergies. These initiatives are part of Stellantis’s broader strategy since its formation in 2021 through the merger of Fiat Chrysler and PSA, with a focus on securing supply agreements for essential materials in its global EV production.
As the automotive industry accelerates its transition towards electric mobility, partnerships like the one between Stellantis and CATL underscore the critical role of strategic collaborations and supply chain strengthening in achieving sustainable and widespread EV adoption.
