Stellantis and battery provider CATL on Tuesday signed a memorandum of understanding that might pave the way in which for extra inexpensive EVs in Europe.
The non-binding memorandum outlines the provision of lithium iron phosphate (LFP) battery cells and modules by CATL to Stellantis for European manufacturing inside an unspecific timeframe. The 2 firms are additionally contemplating a three way partnership associated to batteries, in keeping with a Stellantis press launch.
LFP batteries have been touted by some automakers as a extra inexpensive different to the nickel manganese cobalt (NMC) chemistry utilized by many battery producers. EV battery price hasn’t fallen as a lot as anticipated following a spike in 2022, hampering affordability.
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Citroën Ë-Spacetourer
CATL is among the foremost proponents of LFP batteries. It not too long ago confirmed next-generation LFP tech that the corporate claims can cost a lot quicker, including as much as 250 miles of vary in 10 minutes. Its collaboration with Stellantis may gain advantage mainstream Euro-market manufacturers like Peugeot and Citroën, and maybe Jeep, however it’s unclear whether or not it could contain something U.S.-bound.
Different firms want to broaden use of LFP batteries—with extra relevance for the U.S. market. Hyundai is growing its personal LFP batteries in South Korea, which means they might not be topic to U.S. commerce restrictions that will apply to batteries sourced from China.
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Jeep Avenger
And Chinese language battery makers are shifting some manufacturing to the U.S. China’s Gotion has additionally introduced plans for an Illinois plant for LFP EV cells—though it hasn’t but mentioned the place they’re for use.
Ford executives have mentioned the automaker considers LFP chemistry as key to EV affordability. In September, although, Ford hit pause on a Michigan battery plant that was set to make use of CATL know-how however could be owned and run by Ford. The automaker has now resumed work on the power however on Tuesday disclosed that it has been downsized to twenty gigawatt-hours of annual output from the 35 gigawatt-hours beforehand deliberate.