Stellantis lays €30bn on electric vehicle market
Strategy will be supported by battery plants to compete with Tesla and other carmakers
Stellantis, the world’s fourth-biggest carmaker, said on Thursday it will invest more than €30bn by 2025 on electrifying its vehicle line-up.
The Amsterdam-based company, which was formed in January from the merger of Italian-American automaker Fiat Chrysler and France’s PSA, said its strategy will be supported by five battery plants in Europe and North America as it prepares to compete with electric vehicle (EV) leader Tesla and other rivals across the world.
“This transformation period is a wonderful opportunity to reset the clock and start a new race,” Stellantis CEO Carlos Tavares said on a webcast. “The group is at full speed on its electrification journey.”
The company is targeting more than 70% of sales in Europe and over 40% in the US to be low-emission vehicles — either battery-operated or hybrid electric — by 2030. It also aims to make the total cost of owning an EV equal to that of a petrol-powered model by 2026.
It said all 14 of its vehicle brands — including Peugeot, Jeep, Ram, Fiat and Opel — will offer fully electrified vehicles. Another focus will be electrifying its commercial vehicle line-up, and rolling out hydrogen fuel-cell medium-sized vans by the end of 2021.
One of the five battery plants will be at Stellantis’s engine facility in Termoli, Italy, joining previously announced factories in Germany and France. The company has also said it will have one in the US.
Stellantis wants to secure more than 130 gigawatt hours (GWh) of battery capacity by 2025 and more than 260GWh by 2030. It has signed memorandums of understanding with two lithium geothermal brine process partners in North America and Europe to ensure supplies of lithium, a critical raw material for batteries.
The company aims to cut the cost a battery pack by more than 40% from 2020 to 2024 and a further 20% by 2030. It plans to use two battery chemistries by 2024 — a high energy-density option and a nickel cobalt-free alternative. By 2026, it intends to introduce solid-state batteries.
Stellantis’s EVs will be built on four electric platforms and have driving ranges of 500km-800 km on a single charge and fast charging capability of 32km per minute.
French rival Renault said last week that 90% of its main brand models would be all-electric by 2030, whereas previously it had included hybrids in its target.
Germany’s Volkswagen, the world’s second-biggest carmaker after Toyota, expects all-electric vehicles to account for 55% of its total sales in Europe by 2030, and more than 70% of sales of its Volkswagen brand.
General Motors said last month it planned to spend $35bn by 2025 on electric and self-driving vehicles. It has set a target of selling all new light cars and trucks with zero exhaust emissions by 2035.
Earlier on Thursday, Stellantis said operations 2021 got off to a better-than-expected start despite a global shortage of semiconductor chips.
Margins on adjusted operating profits in the first half of 2021 were expected to exceed an annual target of 5.5% to 7.5%, despite production losses due to the semiconductor supply crunch.
It said synergies from its merger were well on track to exceed the first year's target and would help to contribute to a positive cash flow for the year as a whole. Stellantis has promised more than €5bn in annual synergies.
Stellantis shares extended losses after its EV announcement and were last down about 3.2% in Milan.
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