Fiat-Parent Stellantis Join Hands With CATL For LFP Battery Supply

Stellantis NV STLA penned a Memorandum of Understanding (MoU) with CATL for supplying lithium iron phosphate (LFP) battery cells and modules to power its electric vehicle production in Europe.

As per the MoU, the long-term collaboration between companies includes creating a bold technology roadmap to support STLA's battery electric vehicles and identifying opportunities to enhance the battery value chain.

Both companies are also considering forming a joint venture with equivalent contributions to aid STLA's aggressive electrification strategy.

LFP technology is expected to help STLA to offer high-quality, durable, and affordable electric vehicles in passenger cars, crossovers, and SUVs in the B and C segments.

Also Read: Chrysler Parent Stellantis' Workers Vote To Ratify Labor Contract: Report

"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. 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," said Stellantis CEO Carlos Tavares.

Yesterday, the Fiat-parent company disclosed planning to commence negotiations with the Italian government next month to establish a comprehensive agreement focusing on the automotive industry in Italy.

Read: Stellantis Plans Buyouts To 6,400 Salaried Employees To Cut Costs: Report

Price Action: STLA shares closed higher by 1.88% at $20.61 on Monday.

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