Stellantis' Leapmotor EV Venture Gains Chinese Approval: Report

Stellantis N.V. STLA reportedly received the Chinese regulator’s approval that will allow the company to build and sell Leapmotor’s electric vehicles outside China.

China’s National Development and Reform Commission (NDRC) has given the nod for the joint venture, reported Reuters, citing two sources familiar with the matter.

Stellantis had announced the joint venture in October 2023 and said it was acquiring a 21% stake in Leapmotor in a $1.6 billion deal.

Under the terms of the agreement, Stellantis would obtain the exclusive rights to build, export, and sell Leapmotor products outside China, per the report.

The report further noted that the approval for the joint venture comes when tensions are running high between China and the European Union amid a probe into whether China’s EV manufacturers benefit from skewed subsidies.

Also Read: Kyndryl Amps Up Tech Collaboration with Stellantis

Price Action: STLA shares are trading higher by 1.81% at $27.28 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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