Stellantis pouring 30b euros into electrification

Stellantis is investing more than 30 billion euros through 2025 in electrification and software.

A merger of Fiat Chrysler and PSA Group, Stellantis is targeting more than 70% of sales in Europe and 40% in the US to be low emission vehicles (LEVs) by 2030, with all 14 brands committed to offering fully electrified solutions.

Stellantis aims to deliver battery electric vehicles (BEVs) that meet customer demands, with ranges around 500-800km and fast charging capability of 32km per minute.

It has four flexible BEV-by-design platforms, a scalable family of three electric drive modules and standardised battery packs to cover all brands and segments.

Stellantis has a global EV battery sourcing strategy of more than 260GWh by 2030, supported by five gigafactories between Europe and North America.

Plans include dual battery chemistries – a high energy-density option and a nickel cobalt-free alternative by 2024, while it intends introducing solid state battery technology in 2026.

Battery packs will be tailored for a variety of vehicles – from smaller city cars to energy-dense packs for performance vehicles and trucks.

EV battery pack costs are targeted to be reduced by more than 40% from 2020 to 2024 and by more than an additional 20% by 2030.

Platforms are designed for long life via software and hardware upgrades.

It will leverage in-house expertise, partnerships and joint ventures to deliver advanced technology at affordable prices.

This strategy will allow the company to target sustainable, double-digit adjusted operating Income margins in the mid-term, it says.

“Our commitment with this €30 billion plus investment plan is to offer iconic vehicles that have the performance, capability, style, comfort and electric range that fit seamlessly into their daily lives,” Stellantis chief executive Carlos Tavares says.

Stellantis plans to achieve increased profitability too, including battery cost reductions, continued optimisation of distribution and production costs and realisation of new revenue streams – especially from connected services and future software business models.

It aims to be a global leader in e-commercial vehicles, the commercial electrification rollout extending to all products and all regions during the next three years, including delivery of hydrogen fuel cell medium vans by the end of 2021.

Stellantis has signed memorandum of understandings (MOUs) with two lithium geothermal brine process partners in North America and Europe to ensure a sustainable supply of lithium, identified as the most critical battery raw material with regard to availability, as well as have the ability to integrate lithium into the supply chain once available.

The company intends maximising the full value of the battery life cycle through repair, remanufacturing, second-life use and recycling, as well as ensure a sustainable system that prioritizes customer needs and environmental concerns.

It aims for the total cost of EV ownership to be equivalent to internal combustion engine (ICE) vehicles by 2026.

Stellantis says it will offer a full suite of solutions for private, business and fleet customers that help simplify the ownership journey – including providing day-to-day smart charging offers using green energy sources, tapping into existing partnerships to expand charging options and accelerating smart grid use.

It will support the development of fast charging networks across Europe, enabled by a MOU signed between Free2Move eSolutions and Engie EPS, aiming to replicate the former’s business model for the North American market.

The announcements followed a Stellantis EV Day on July 8, 2021.