Chinese and European companies will jointly develop advanced technologies and opportunities for future expansion of the battery value chain, laying the groundwork for further cooperation in the future.
On November 21, 2023 Amsterdam time, Stellantis Group (STLA: NY) and CATL (300750: SZ) announced that they have signed a Memorandum of Understanding (MoU), which stipulates that CATL will locally supply lithium iron phosphate (LFP) cores and modules to Stellantis Group in Europe, to boost Stellantis' electric vehicle production in the European market. To further support Stellantis Group's ambitious electrification strategy and goals, the two parties are exploring the possibility of establishing a joint venture on a reciprocal basis.
This MOU outlines the long-term cooperation between CATL and Stellantis Group in two strategic areas. One is to develop a bold technology roadmap to support the development of Stellantis' cutting-edge pure electric vehicles. The second is to actively explore new collaboration opportunities to further enhance the battery value chain.
Carlos Tavares, Global CEO of Stellantis Group, expressed that, "The MOU with CATL for lithium iron phosphate batteries is another component of Stellantis' long-term strategy to protect the freedom of mobility of the European middle class. As an industry leader in batteries, CATL will work with many of Stellantis' iconic automotive brands to bring innovative, easy-to-use and scalable battery technology to customers, and will help the Stellantis Group achieve our goal of 'net-zero carbon emissions by 2038'. " The long life and high thermal stability of lithium iron phosphate battery technology will enable Stellantis to offer its customers high-quality, durable and affordable electric vehicles ranging from sedans, crossovers and SUVs in the B- to C-segment.
As part of the Stellantis Group's "Dare Forward 2030" strategic plan, the Group's electrification goal is that by 2030, all Stellantis passenger cars sold in Europe will be purely electric, and 50% of all passenger cars and light trucks sold in the United States will be electric. At the same time, Stellantis plans to become a net-zero carbon emitter by 2038, and the Group is creating a series of partnerships to ensure a stable and low-carbon supply of key raw materials as it implements its electrified future.
Zeng Yuchun, Chairman and General Manager of CATL, illustrated that, "We are very pleased to take our partnership to the next level. Leveraging Stellantis' long experience in vehicle manufacturing and CATL' advanced battery technology, I am confident that this partnership will be a decisive step for both companies to achieve their carbon neutrality goals. CATL will continue to be committed to providing partners with more competitive and sustainable solutions, and making outstanding contributions to the global energy transition."
As of press time, CATL closed at CNY 171.13 apiece, with a market capitalization of CNY 752.8 billion. Stellantis closed at USD 20.46 apiece, with a market capitalization of EUR 59.413 billion.