CEO of Stellantis, Carlos Tavaresrepeatedly pointed the finger at the cost of electric vehicles. According to Automotive News Europe, during the presentation of the Group’s 2022 financial data, the manager said that some actions are being evaluated to reduce the cost of these vehicles. In addition, Stellantis has to face increasingly insidious competition from Chinese builders which are gradually expanding their activities in the Old Continent. After all, Tavares himself has repeatedly warned about the risks of the European automotive market with the arrival of brands from China.
Among the actions that Stellantis Group intends to carry out are use LFP (lithium iron phosphate) batteries in Europe on their electric vehicles, at least on some models. As you know, these batteries, although they have a lower energy density than NMC (nickel-manganese-cobalt) batteries, they are cheaper. It is for this reason that these batteries have been chosen by various car manufacturers to reduce the cost of electric vehicles. Recently, Ford also decided to use them on some of its models for this very purpose. Tavares emphasized in this regard:
We need LFP batteries and we will have LFP batteries because they are price competitive and allow for affordable mid-range vehicles.
So Stellantis’ plan is to use LFP batteries. to make it more accessible electric vehicles in Europe. Tavares, however, did not provide a timeline for when Stellantis intends to implement these batteries in its models.
Another problem who will supply LFP batteries for Stellantis. As we know, the Group is working on the construction of a number of battery factories in Europe. One of them will be made in Italy. However, batteries of the type NMC Extension (nickel-manganese-cobalt). Therefore, in order to have LFP (lithium iron phosphate) batteries in stock, Stellantis will have to turn to third-party suppliers. Suspect number one CATL which already supplies its LFP batteries to many automakers, including Tesla and Ford. CATL has also been a partner of Stellantis for some time and, as we know, is investing in the construction of new factories in Europe in order to better supply its customers.
However, this is speculation at the moment. What is certain is that Stellantis intends to focus on LFP batteries. To understand the supply strategy for these batteries, we will have to wait for further news.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.