Stellantis and Chinese battery-making giant CATL have signed a memorandum of understanding to produce lithium-iron-phosphate (LFP) batteries for electric cars in Europe.
The two firms are considering a 50:50 joint venture for a European battery plant, but decisions on the size or location of any such factory have yet to be made.
They will also work to develop a long-term strategy for Stellantis’s EV technologies and to strengthen its battery supply chain in Europe.
Stellantis CEO Carlos Tavares called the agreement “another ingredient in our long-term strategy to protect freedom of mobility for the European middle class”, hinting that local production of LFP batteries would help to improve the affordability of the firm’s electric models.
