Stellantis NV (NYSE:STLA, EPA:STLA) has agreed a partnership with Chinese firm CATL for the supply of electric vehicle (EV) batteries to its production sites in Europe.
Under the non-binding preliminary agreement, CATL will supply Stellantis with battery cells and modules as it bids to exclusively offer electric vehicles in Europe by 2030.
Stellantis, which owns Jeep, Peugeot, Fiat and Alfa Romeo, predicted that the deal would help supply it over the long term, while also protecting “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,” Stellantis chief executive Carlos Tavares said.
Stellantis is poised to build three European EV factories, based in Germany, France and Italy, as part of a joint venture with Mercedes and TotalEnergies.
It is also in talks over creating a joint venture with CATL, Stellatis added in a statement, which could also help to supply the manufacturer’s “aggressive electrification strategy”.