€30 Billion Investment Plan of Stellantis for Electric Vehicle

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Formed after the merger of Fiat Chrysler (Italian American automaker) and France’s PSA in 2021, Stellantis revealed its electrification plans recently. In the next five years, Stellantis has plans to invest more than €30 billion to build new ecosystems and technologies. Stellantis is set to compete against other auto manufacturers globally with the electrification of its 14 iconic brands, strategic partnerships for five Giga factories, and a dedicated software team.

Moreover, by the end of 2021, Stellantis will also focus on electrifying its commercial line-up of vehicles and rolling out hydrogen fuel-cell medium vans. The company plans to make its 98% models in the US and Europe region to be electric by 2025. Also by 2030, the sale of BEV and PHEV (low emission vehicles), will be above 40% in the US and above 70% in Europe.

There will be four BEV-centric platforms to be the backbone of the company’s electric vehicles. The extremely flexible design will allow sharing of various components and will also enable each platform to assist the production of up to 2 million units annually. All the platforms will come with three dedicated electric drive modules (EDM) which will be compact, flexible, and have a common scalable power inverter. These modules can be configured for all-wheel drive, rear-wheel drive, front-wheel drive, and 4xe with in-house proprietary controls, and software. The power inverter will be fitted with a selectable power device, either silicon carbide (SIC), or silicon (Si) for good performance. In Europe, supply will be done by NPe (a joint venture between Stellantis and NIDEC) and by Stellantis and its strategic partners in the US.

Stellantis will build a high energy-density nickel-based battery and a nickel-cobalt-free alternative under its dual chemistry battery strategy which will be available from 2024 in the market. This new solution will lower battery pack costs by more than 40% from 2020 to 2024 and by an extra 20% by 2030. Stellantis so far has invested in three Giga factories (2 in Europe and 1 in the US), to develop the battery production, which will secure a cumulative plant capacity of 130+ GWh by 2025. By 2030, this capacity will go up to 260+ GWh with two more Giga factories in Europe and the US. Stellantis has signed an MoU with two lithium geothermal brine process partners in the US and Europe to ensure an unhindered supply of lithium.

Stellantis plans to build a strong ecosystem for its Electric Vehicle business after securing the development and production of powertrains and batteries. The partnerships with Free2Move and Engie PS will allow the company to provide customizable bundled charging solutions for both B2B and B2C segments. Jointly, they plan to deploy 5,000 grid integrated fast chargers across 1,500 locations in Europe by 2025, increasing them to 35,000 across 9,000 locations by 2030 across North America, South America, and Europe. Moreover, Stellantis is building a full circular battery recycling strategy for sustainable battery management. With software to manage and monitor battery health, Stellantis will set up 21 repair centres globally by the end of 2021 to provide unique services and solutions to its customers. Batteries not fit for vehicles anymore will be used for charging and energy storage solutions in their second life. With qualified partners, Stellantis will recycle batteries using a new technology that will be able to extract most of the raw materials for their reuse in new batteries. Stellantis is expecting a volume growth of nearly 5,000 batteries per year by 2030 for recycling only in Europe. To support this, battery re-manufacturing units are also planned. As of now, there is only one at Rüsselsheim in Germany.

Lastly, the company will have a dedicated software development unit that will provide software for better traction control and regenerative braking, superior battery management system, and power usage. To provide a best-in-class experience, the new smart cockpit and remote service products will be deployed.

Several key technology joint ventures, like with NIDEC for e-powertrain; with Foxconn for the smart cockpit and remote service; with BYD, LG Chem, TotalEnergies, CATL, and SVOLT for battery cell chemistry and pack production; and with Free2move and Engie PS for the deployment of charging infrastructure, will provide Stellantis the opportunity to leverage its in-house competencies and also enable it to bring solutions in the market more speedily and stay ahead of the competition.

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