CATL will supply Stellantis with lithium-iron-phosphate (LFP) batteries under a contract whose financial details have not been disclosed by the companies. Stellantis is a French-Italian automobile concern that includes brands such as Fiat, Peugeot, Alfa Romeo and Jeep. The LFP battery will enable Stellantis to offer high-quality, durable and affordable electric vehicles in the passenger car, crossover and small and mid-size sport utility vehicle (SUV) segments, the companies said.

The preliminary agreement outlined a long-term collaboration between the two businesses, including “identifying opportunities to further strengthen the battery value chain.” “We believe this partnership will be a critical step in both companies’ journey toward carbon neutrality goals,” said CATL Chairman and CEO Robin Zeng.

Stellantis CEO Carlos Tavares said the signed memorandum of understanding on the chemistry of LFP batteries is “another component of our long-term strategy to protect the freedom of mobility for the European middle class”.

From the point of view of the need to secure batteries for its electric cars in Europe, the Stellantis car company is building three plants known as gigafactories, namely in France, Germany and Italy. It does so through the ACC joint venture with the German car manufacturer Mercedes and the French energy concern TotalEnergies. Others in the region may follow, Reuters reported.

The Stellantis automotive group was formed at the beginning of 2021 by the merger of the Italian-American car manufacturer Fiat Chrysler and the French PSA, the manufacturer of Peugeot cars. Since then, Stellantis has entered into several contracts for the supply of materials necessary for its global production of electric cars.