Stellantis Invests $1.6B In Leapmotor, Aims To Accelerate Global EV Sales

Stellantis N.V. STLA and Leapmotor have announced a €1.5 billion ($1.58 billion) investment from Stellantis to acquire approximately 20% of Leapmotor, making Stellantis a strategic shareholder. The deal also includes the creation of Leapmotor International, a joint venture led by Stellantis which will oversee the manufacturing and sales of Leapmotor products outside Greater China.

According to the press release, this partnership aims to boost Leapmotor's sales in China and significantly accelerate the brand’s sales in other regions, beginning with Europe. Furthermore, Stellantis plans to utilize Leapmotor’s efficient EV ecosystem to help meet its Dare Forward 2030 electrification targets, with the potential for more synergies in the future. The joint venture expects to begin shipments in the second half of 2024.

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Stellantis CEO Carlos Tavares sees this as the perfect time to support the global expansion plans of Leapmotor. He believes Leapmotor’s EV offerings are complementary to Stellantis’ current technology and will bring more affordable mobility solutions to global customers. Stellantis will have two seats on Leapmotor's Board of Directors and will also appoint the CEO of the Leapmotor International joint venture.

Leapmotor focused on the mid-to-high-end market and delivered approximately 111,000 NEV units in 2022. Over the next three years, Leapmotor's product plan is expected to cover the full range of A-to-E segments, based on one technical architecture with three highly scalable platforms.

The transaction between Stellantis and Leapmotor is subject to customary closing conditions, including regulatory approvals.

Photo by Jonathan Weiss on Shutterstock

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