Stellantis and CATL Develop Local Supply of LFP Batteries for Europe
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Stellantis and CATL Develop Local Supply of LFP Batteries for Europe

Tonale EVs in italian flag colours, Stellantis and CATL
  • CATL and Stellantis are preparing a joint venture for fewer supply chain issues. 
  • The Memorandum of Understanding creates a unique supply chain agreement that could set a trend for other manufacturers. 
  • Lithium-iron phosphate battery production will support Stellantis’s Dare Forward sustainability goals. 

With a strategic partnership between Stellantis and battery manufacturer CATL, the road to electrified transportation became more convenient. Their partnership creates a unique roadmap bringing innovative battery technology to European electric vehicle production. 

The Memorandum of Understanding For Better EV Production

Stellantis and CATL signed a non-binding Memorandum of Understanding – an MoU – to announce the partnership between the battery and automotive giants. The two companies are also in talks to form a joint venture to smooth the supply chain from battery manufacturing to EV manufacturing. This technological roadmap could create a roadmap for other automakers and battery manufacturers to speed up EV development and reduce hiccups in supply chains. 

According to Stellantis CEO Carlos Tavares, “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.”

He 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.”

Working Together to Achieve Carbon Neutrality Goals

CATL responded by honoring Stellantis’s experience in automotive manufacturing. This partnership will move both companies toward carbon neutrality goals, so both can deliver more products to customers looking to reduce their impact on the environment. 

CATL manufactures lithium-iron phosphate batteries. The innovative battery technology surpasses lithium-ion technology, as the LFP batteries have a longer battery life and are less likely to overheat.

Stellantis and the Dare Forward Strategic Plan

Stellantis is the parent company for popular auto brands like Alfa Romeo, Jeep, Dodge, Chrysler, Maserati, and RAM. It is also the parent company for European brands like Citroën, Vauxhall, Fiat, Opel, and Peugeot. The Stellantis brands in North America only offer a few plug-in hybrid models like the Jeep Wrangler 4xe and the Alfa Romeo Tonale PHEV, but Stellantis is already selling the fully electric Citroën e-C3 in the UK, Italy, France, and Spain. 

Stellantis surprised the world by becoming a brand partner with the Chinese EV brand Leapmotor. With the CATL partnership, Stellantis will have more strength to move the affordable Chinese EV around the planet. 

Stellantis has a bold strategic plan called Dare Forward 2023. The automaker has a goal of selling 100% battery electric passenger cars in Europe and 50% passenger cars and light-duty trucks in the United States by 2030. 

The Dare Forward plan also includes becoming a carbon net zero company eight years later. A joint venture with CATL would push the automaker closer to achieving its sustainability goal. 



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