Stellantis (NYSE: STLA) said today that it signed with CATL a Memorandum of Understanding (MoU) for the local supply of LFP batteries for European market. The MoU outlines joint development of a technology roadmap and future battery value chain opportunities. Stellantis and CATL are considering the possibility of a joint investment in the form of a joint venture with equivalent contributions. Stellantis aims to use lithium iron phosphate (LFP) batteries to assist making its Dare Forward 2030 electrification targets. LFP has a long service life and high thermal stability.

“This MoU with CATL on LFP battery chemistry is another ingredient in our long-term strategy to protect freedom of mobility for the European middle class,” said Stellantis CEO Carlos Tavares. “CATL is the industry leader in this sector and together with our iconic vehicle brands, we will bring innovative and accessible battery technology to our customers while helping us achieve our carbon net zero ambition by 2038.”

Stellantis (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) has plans of reaching a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by 2030. Stellantis said it is on track to become a carbon net zero corporation by 2038. Stellantis is gathering partnerships to ensure a stable, low-carbon supply of key materials for its, well, electrified future. LFP technology can in theory allow Stellantis to offer high-quality, durable, and affordable electric vehicles in passenger cars, crossovers and SUVs in the B and C segments.