As electric vehicle sales and production rise, capacity demand for lithium-ion battery cells is rising exponentially.
“In this global race to secure electric vehicle production, we are proud to support Britain’s auto sector in this crucial transition as we work to build back better.”
Europe has lagged Asia in the race to produce lithium-ion batteries, but automotive and battery players are investing heavily to scale up production.
As sales of electrified vehicles in Europe accelerate, and emission regulation gets even tighter, the European automotive industry is pivoting fast to electrify the supply chain.
Sales and production of electric vehicles (EVs) continue to accelerate globally, with double-digit annual growth expected over the next decade.
To keep the expansion and development of EVs charging ahead, vehicle manufacturers, automotive suppliers and governments are plugging in more investment to regional supply chain and gigafactory networks for lithium-ion batteries.
Meanwhile, with a large share of the value chain based in Asia and especially China, carmakers and automotive suppliers are in a race to develop battery factories and supply chains across Europe and North America, too.
The battery cells and components are currently being supplied from Stellantis’ supplier in Europe but in the future will come from Automotive Cells Company (ACC), the joint venture set up last year between Group PSA, Opel, Total and Saft.
By the end of 2023 ACC will have two gigafactories making batteries in Douvrin (France) and Kaiserslauten (Germany).
This key Tesla rival has a $36 billion plan to win the electric-vehicle race.
The world’s fourth-largest car maker promises a truck to rival Ford’s electric F-150 by 2024
Stellantis, the world’s fourth-largest car maker, announced on Thursday that it would invest more than €30 billion ($36 billion) through 2025 as part of an ambitious plan to accelerate on the road to dominating in electric-vehicles.
In its first “EV Day,” Stellantis —formed out of the $52 billion merger of Fiat Chrysler and PSA earlier this year—said its investment would focus on electrification and software.
The auto giant includes brands Fiat, Chrysler, and Jeep as well as Peugeot, Vauxhall, and Citroën, collectively producing around 8.7 million units a year.
Stellantis’ new targets include 70% of European sales and 40% of U.S. sales coming from low-emission vehicles by 2030, and sourcing EV batteries—which are expected to soon be in short supply—from five gigafactories in Europe and North America.
The group’s plan for battery-electric vehicles—which are fully-electric, unlike hybrids, and widely viewed as the future of the sector—relies on developing four scalable EV platforms that can be rolled out across all 14 of its brands.
“The strategy we laid out today focuses the right amount of investment on the right technology to reach the market at the right time, ensuring that Stellantis powers the freedom of movement in the most efficient, affordable and sustainable way,” said Carlos Tavares, Stellantis’ chief executive officer, in a statement.
Europe overtook China in 2020 as the world’s largest market for electric-vehicles, amid a pedal-to-the-metal push across the region to increase EV adoption with new fines over emissions targets for manufacturers and increased incentives for buyers.
While China has taken back the top spot in 2021, Europe remains a critical market for global auto makers looking to sell more electric-vehicles.
Expectations were very high for Stellantis going into the EV Day. Ahead of the event, analysts at Swiss bank UBS led by Patrick Hummel said they thought that “if the budgets and timelines are not ambitious enough it could weigh on sentiment for the stock.”
Hummel and his team noted that their focus was on Stellantis’ plans to electrify pickup truck offerings in North America, which is the segment that typically generates the group the most cash.
While Stellantis outlined plans for an all-electric Dodge Ram by 2024, this would put it at least two years behind Ford, which plans for a 2022 electric F-150 truck.
“We think accelerating the timeline is crucial for Stellantis, especially in North America where several electric pick-up trucks are due to be launched over the next few quarters,” the UBS analysts said.
“In Europe and China, BEVs from competition on dedicated platforms with superior range, performance metrics and ultimately lower production costs, increase the pressure on Stellantis to bring forward EV launches on next-gen platforms.”
How will Tesla’s Cybertruck compare with the Hummer EV, and when will they be out?
There are two new electric pickup trucks set to debut that promise to shake things up.
Tesla, which has disrupted the auto industry with its family of sedans and SUVs, is looking to crack the lucrative truck market with its upcoming Cybertruck.
General Motors, GM, playing catchup to its upstart rival, brings back the legendary Hummer name on an electric pickup that will sell through its GMC division.
Food for thought on the Road to Manono in your Mustang Elenoar
Or will it be a GMC EV, Tesla, Ford F-150 Lightning or perhaps a Jeep
Maybe a Maserati is more to your liking, as
Stellantis — the product of a $52 billion merger between automakers Fiat Chrysler and Groupe PSA — plans to offer an array of all-electric or hybrid vehicles through 2025, including 10 new models in 2021, according to CEO Carlos Tavares.
From Dodge to Maserati, every new model the company launches from now until 2025 will offer an “electrified” variant.
Through its 14 brands, which includes Jeep and Alfa Romeo, Stellantis currently has 29 electrified models on sale globally, according to Tavares.
The automaker’s coveted Jeep brand also has promised to electrify its entire lineup going forward, including the recently launched Wrangler SUV and a redesigned version of the Grand Cherokee SUV later this year.
Cheers
Frank
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