CATL to Supply Batteries to Stellantis for EV Production

Stellantis and CATL have announced a preliminary agreement for the supply of battery cells and modules for Stellantis' electric vehicle production in Europe. In a joint statement, the two companies confirmed that they are exploring the option of making an investment to establish a 50-50 joint venture in order to support the automakers' electrification strategy. CATL has agreed to supply lithium iron phosphate (LFP) batteries to the Franco-Italian automaker, which owns brands such as Jeep, Peugeot, Fiat and Alfa Romeo. The financial details of the agreement were not disclosed.

According to them, LFP batteries will enable Stellantis to provide top-notch, long-lasting, and cost-effective EVs in the passenger car, crossover, and small to medium-sized SUV categories. Stellantis and CATL said the memorandum of understanding (MoU) announced on Nov 21 outlined a long-term collaboration between the two groups, including "identifying opportunities to further strengthen the battery value chain."

"We believe the partnership will be a decisive step on both parties' journey towards carbon neutrality goals," CATL Chairman and General Manager Robin Zeng said.

Stellantis CEO Carlos Tavares said the MoU on LFP battery chemistry was "another ingredient in our long-term strategy to protect freedom of mobility for the European middle class."