Stellantis focuses on LFP batteries to reduce electricity costs

Stellantis CEO, Carlos Tavares, has repeatedly pointed the finger at the cost of electric cars. As Automotive News Europe reports, during the presentation of the Group’s 2022 financial data, the manager said that some actions are being evaluated with the aim of lowering the costs of these cars. Stellantis, moreover, has to face the increasingly insidious competition of the Chinese builders who are gradually expanding their activities also in the Old Continent. After all, Tavares himself has repeatedly warned of the risks of the European automotive market with the arrival of brands from China.

Among the actions that the Stellantis Group intends to carry out is that of use LFP (lithium iron phosphate) batteries in Europe on its electric cars, at least on some models. As we know, these accumulators, although they offer a lower energy density than NMC (nickel-manganese-cobalt) batteries, they are less expensive. Precisely for this reason, these batteries have been chosen by various car manufacturers with the aim of reducing the cost of electric cars. Recently, Ford has also decided to use them on some of its models for this very purpose. Tavares, in this regard highlighted:

We need LFP batteries and we will have LFP batteries because they are cost-competitive and allow for affordable middle-class cars.

Stellantis’ plan, therefore, is to use LFP batteries to make it more accessible electric cars in Europe. Tavares, however, did not want to provide a timeline on when Stellantis intends to introduce these accumulators into its models.

Other problem is who will supply the LFP batteries to Stellantis. As we know, the Group is working on building a series of battery cell factories in Europe. One of these will be made in Italy. Inside them, however, batteries of the type will be produced NMC extension (nickel-manganese-cobalt). Therefore, in order to have LFP (lithium-iron-phosphate) accumulators available, Stellantis will have to turn to third-party suppliers. The number one suspect is 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 Europe in the construction of new factories in order to better supply its customers.

At the moment, however, it is speculation. What is certain is that Stellantis intends to focus on LFP batteries. To understand the supply strategy of these accumulators we will have to wait for the arrival of further news.