Stellantis Forges EV Partnership: The electric vehicle (EV) race is gaining momentum, and Stellantis, the parent company of brands like Jeep and Chrysler, is keeping pace by teaming up with a Chinese startup. In a 1.5 billion (nearly $1.6 billion) deal, Stellantis is acquiring a 20% stake in Leapmotor, an EV manufacturer based in Hangzhou, China.
This strategic partnership will birth a joint venture where Stellantis gains exclusive rights to produce, export, and sell Leapmotor’s EVs outside Greater China, with an initial focus on the European market. Stellantis will maintain a controlling 51% stake in the venture, while Leapmotor holds the remaining 49%. Shipments from this collaboration are slated to commence in the second half of 2024.
Stellantis’ move to invest in Leapmotor underscores the growing interest among global automakers in Chinese EV startups. These emerging companies are known for their ability to rapidly produce cost-effective EVs, making them more accessible to consumers. In fact, established automakers like Volkswagen have already entered the fray by purchasing stakes in Chinese EV manufacturers, such as Xpeng.
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Mercedes was also reportedly exploring investment opportunities with Chinese EV maker Nio, aiming to tap into its R&D and technology. While Mercedes denied any immediate investment plans, this trend showcases the industry’s inclination toward Chinese EV expertise.
For Stellantis, this partnership comes roughly a year after it terminated its joint venture with Guangzhou Automobile Group Company (GAC) in China, which had focused on Jeep truck production and distribution. Despite the new collaboration, Stellantis continues its “asset-light approach” in the country.
The deal’s details reveal Stellantis acquiring Leapmotor shares at a price of 43.8 Hong Kong dollars ($5.6) per share, representing a 19% premium over Leapmotor’s closing price before the announcement.
Investors, however, had mixed reactions to the news. Leapmotor shares saw an 11% drop in Hong Kong after the partnership announcement, indicating both the challenges and opportunities inherent in the rapidly evolving EV landscape.
Our Reader’s Queries
Who supplies Stellantis with EV batteries?
Stellantis N.V. and CATL have recently signed a non-binding Memorandum of Understanding (MoU) for the local supply of LFP battery cells and modules. This move is aimed at powering Stellantis’ electric vehicle production in Europe. The agreement is set to enhance the production of electric vehicles in Europe, and it is a significant step towards achieving sustainable energy.
What electric vehicles does Stellantis make?
Stellantis is leading the charge towards sustainable and affordable mobility with their range of electrified products. From the Peugeot e-2008 to the new Fiat 500e and the Jeep family of 4xe vehicles, they are fully committed to the electrification of transportation. With their innovative approach and dedication to sustainability, Stellantis is paving the way for a greener future.
What are the plans for electrification for Stellantis?
Stellantis has unveiled its ambitious Dare Forward 2030 strategic plan, which includes a pledge to achieve 100% of passenger car battery electric vehicle (BEV) sales mix in Europe and 50% of passenger car and light-duty truck BEV sales mix in the United States by 2030. This move is a significant step towards the company’s commitment to sustainable mobility and reducing carbon emissions. With this plan, Stellantis is set to become a leader in the electric vehicle market and pave the way for a greener future.
What is the production capacity of Stellantis EV?
Stellantis, the renowned automotive company, is all set to boost its battery capacity to a whopping 400 GWh. This move is a significant step towards the company’s commitment to sustainable mobility and reducing carbon emissions. With this expansion, Stellantis aims to cater to the growing demand for electric vehicles and provide its customers with a reliable and eco-friendly driving experience. The company’s focus on enhancing its battery capacity is a testament to its dedication to innovation and progress in the automotive industry.