European automaker Stellantis and Chinese battery giant CATL announced that they have signed a non-binding MoU for the LFP battery supply in Europe. The pair is also considering building a joint battery plant in the region.
According to an announcement on November 21, the MoU outlined a long-term collaboration between the two companies to build a technology roadmap and identify opportunities to strengthen the battery value chain.
CATL will provide Stellantis LFP battery cells and modules locally in Europe to power the carmaker's EVs. The duo is also considering forming a joint venture with equivalent contributions, the announcement said.
Reuters reported that Maxime Picat, Stellantis's global head of purchasing and supply chain, said the two companies plan to build a new gigafactory in Europe to produce LFP batteries.
While declining to reveal possible locations for the new plant, Picat said Stellantis will increase LFP battery adoption on different car segments to enhance affordability, according to Reuters.
Stellantis and CATL said the latter will offer LFP batteries to the automaker's passenger cars, crossovers, and EVs in the small and mid-sized SUV segments.
CATL has expanded in Europe to supply local customers. The company has begun making batteries at its German plant since December 2022. It is constructing another factory in Hungary with a planned annual production capacity of 100GWh. CATL has said it will manufacture the Shenxing battery, a superfast charging LFP battery, at the two European plants.
Stellantis aims to reach 100% passenger battery EV sales mix in Europe by 2030. According to China-based The Paper, the European carmaker has said it will launch EVs with lower-cost LFP batteries domestically. NCM ternary batteries have dominated the European EV market.
