Cheap batteries are the key to affordable electric cars. Stellantis secured their supplies from a major global player.
Along with Chinese carmakers, Asian suppliers are making inroads into key components. One of them is the company CATL, a big player in the production of batteries for electric cars. He is already building a factory in Hungary for local distribution. It won’t be far from the customers. BYD, which has been producing buses here for several years, is considering building a car factory in this region. In the same way, the car manufacturer Chery is looking for a base in Europe.
CATL recently signed a memorandum of understanding with the Stellantis group specifically regarding the production of lithium-iron-phosphate accumulators. Although this type is cheaper due to the use of iron, it does not have as high an energy density as nickel-manganese-cobalt batteries. The cheaper version will be suitable especially for smaller models, where a long range is not needed and the price is at stake.
The joint venture will be divided equally between the partners. The form of the factory and its location are still the subject of discussion. For CATL, this means an increase in sales volume, while Stellantis looks forward to more affordable batteries and other components thanks to a regional source. The result should be a reduction in the prices of future electric cars.
Stellantis already offers a large number of electric cars as part of its large fleet of car manufacturers. Now the Citroën ë-C3 has just arrived and the emission-free Fiat Panda is on the horizon.