CATL and Stellantis have signed a Memorandum of Understanding (MoU) that will see the Chinese battery giant supply the transatlantic carmaker with lithium iron phosphate (LFP) battery cells and modules for EVs built in Europe.
While few details have been announced, the two companies have acknowledged that they are also considering the establishment of a joint venture with “equivalent contributions” and this could include a battery factory in Europe.
Stellantis says using CATL batteries will allow it to build “high-quality, durable, and affordable electric vehicles” in the passenger car, crossover, and SUV classes. The company’s interest and investment in LFP batteries complements its plans to build three battery gigafactories in France, Germany, and Italy through its Mercedes and TotalEnergies joint venture that will specialize in nickel manganese cobalt (NMC) chemistry. These NMC batteries will be used by higher-end models.
“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,” Stellantis chief executive Carlos Tavares said. “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.”
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LFP batteries are becoming increasingly common among lower-end EVs. For example, base versions of the Tesla Model 3 and Model Y use LFP batteries from CATL. MG also uses LFP batteries as do more premium brands like Xpeng and Nio. China dominates the LFP industry and is expected to produce upwards of 99.5% of global supply this year, Auto News reports.
“We are very pleased to elevate our cooperation with Stellantis to a new level,” chairman and general manager of CATL, Robin Zeng added. “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.”
