Stellantis and CATL want to open a battery factory in Europe. This is the key to affordable electric cars

The consortium wants to produce lithium-iron-phosphorus batteries, which should be cheaper than their competitive counterparts.

Stellantis is teaming up with Chinese battery maker CATL. The company intends to open a battery gigafactory in Europe, which will not only make the company independent from external suppliers, but will also significantly reduce costs.

A decision about the size of the plants or their specific location has not been made yet. However, both parties signed an agreement for the implementation of common goals.

According to Maxime Picat, head of purchasing and logistics at Stellantis, the partnership will be completed in the coming months. Then we will know the specifics. The plant is expected to be ready for production within three years at the latest.

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Lithium-iron-phosphorus (LFP) batteries are intended to allow Stellantis to create efficient, durable, yet affordable electric vehicles. An example is the new Citroën ë-C3, sold in the basic version for EUR 23,300.

CATL is the world’s largest battery manufacturer, supplying, among others, Tesla, Volkswagen and Hyundai. Stellantis will soon join this portfolio.