Stellantis and battery provider CATL on Tuesday signed a memorandum of understanding that would pave the best way for extra inexpensive EVs in Europe.
The non-binding memorandum outlines the availability 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 accordance with a Stellantis press launch.
LFP batteries have been touted by some automakers as a extra inexpensive various to the nickel manganese cobalt (NMC) chemistry utilized by many battery producers. EV battery value hasn’t fallen as a lot as anticipated following a spike in 2022, hampering affordability.
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CATL is without doubt one of the predominant proponents of LFP batteries. It lately 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 benefit mainstream Euro-market manufacturers like Peugeot and Citroën, and maybe Jeep, but it surely’s unclear whether or not it might contain something U.S.-bound.
Different firms want to increase use of LFP batteries—with extra relevance for the U.S. market. Hyundai is creating its personal LFP batteries in South Korea, that means they is probably not topic to U.S. commerce restrictions that will apply to batteries sourced from China.
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And Chinese language battery makers are transferring 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 expertise however 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.