Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) said today it has a comprehensive electrification strategy for its brands that will cost 30 billion euros ($35.54 billion). The conglomerate formed by the merger of Fiat Chrysler and PSA said it will use in-house expertise, partnerships, and joint ventures to “deliver advanced technology at affordable prices.” The French company joins the EV investment rush with other automakers, while claiming it too will target “sustainable, double-digit Adjusted Operating Income margins in the mid-term.”
“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,” claimed Carlos Tavares, Chief Executive Officer, Stellantis.
- GM Doubles Down on EVs in Bid to Win Global Race,
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- Volvo to Only Sell EVs Online as a Pure EV Company by 2030,
- Ford to Up Electrification Spend to $30B by 2025. Wants 40% All-Electric Global Volume By 2030)
Stellantis plans to achieve increased profitability by the execution of “synergy opportunities arising from the formation of Stellantis, with a forecast of annual cash synergies of more than €5 billion at steady state, a roadmap of battery cost reductions, and the continued optimization of distribution and production costs, as well as the realization of new revenue streams, in particular from connected services and future software business models.”
As a result, Stellantis is targeting double-digit Adjusted Operating Income margins in the mid-term (~2026), hoping to make the Company a benchmark in profitability while proving electrified mobility to customers on a global basis. Stellantis, like other automakers intends to become the market leader in low emission vehicles.
Through 2030, Stellantis’ LEV mix for passenger cars in Europe is targeted to grow to more than 70% or 10 percentage points ahead of current industry assumptions for the overall market mix.
In the U.S., Stellantis’ LEV mix for passenger cars and light-duty trucks is expected to be more than 40% by 2030. The Company is targeting for the total cost of ownership of EVs to be equivalent to internal combustion engine vehicles by 2026. (Toyota, Subaru at Shanghai Introduce Latest Joint-Venture EVs, Volkswagen ID.4 – Most Affordable AWD Electric Vehicle in US?, Renault Group to Launch 10 Battery-Electric Vehicles by 2025)
The Stellantis electrification roadmap encompasses all areas. The Company’s EV battery sourcing strategy is to secure more than 130 gigawatt hours (GWh) of capacity by 2025 and more than 260 GWh by 2030. EV battery and component needs will be met with a total of five “giga-factories” in Europe and North America, complemented with additional supply contracts and partnerships to support total demand. (Chinese CATL and Honda Alliance to Make EV Batteries, Technology and Maybe Autonomous Vehicles)
Stellantis has signed MOUs with two lithium geothermal brine process partners in North America and Europe to ensure a supply of lithium, identified as the most critical battery raw material. Stellantis will have the ability to integrate lithium into the supply chain once available, it said.
In addition to sourcing strategies, Stellantis’ technical expertise and manufacturing synergies will make battery costs lower. Electric vehicle battery pack costs are targeted to be reduced by more than 40% from 2020 to 2024 and by more than an additional 20% by 2030. All aspects of the battery pack play a role in reducing the costs – optimizing the overall pack, simplifying the format of the modules, increasing the size of the battery cells, and upgrading the battery chemistry.
Stellantis intends to “maximize the full value of the battery life cycle through repair, remanufacturing, second-life use and recycling, as well as ensure a sustainable system that prioritizes customer needs and environmental concerns,” it said.
Smart Technology Enablers?
Four BEV-centric platforms are the backbone of the electrified vehicles from Stellantis brands. The platforms are designed with a high level of flexibility in length and width, as well as component sharing, delivering economies of scale as each platform can support production of up to two million units per year.
The four platforms are:
- STLA Small, with a range up to 500 kilometers/300 miles
- STLA Medium, with a range up to 700 kilometers/440 miles
- STLA Large, with a range up to 800 kilometers/500 miles
- STLA Frame, with a range up to 800 kilometers/500 miles
Propulsion includes a family of three electric drive modules (EDM) that combine the motor, gearbox, and inverter. These EDMs are said to be compact, flexible and can be easily scaled. The EDMs can be configured for front-drive, rear-drive, all-wheel drive and 4xe.
The combination of the platforms, EDMs and high energy-density battery packs will deliver vehicles with best-in-class performance in efficiency, range, and recharging.
A program of hardware upgrades and over-the-air software updates will extend the life of the platforms well into the next decade. Stellantis will develop software and controls in-house to maintain the characteristics unique to each brand.
Battery packs will be tailored for a variety of vehicles – from smaller city cars to energy-dense packs for performance vehicles and trucks. Use of two battery chemistries is planned by 2024 to support various customer needs: a high energy-density option and a nickel cobalt-free alternative. By 2026, the first competitive solid state battery technology is targeted to be introduced.
Stellantis currently has or is completing several key technology joint ventures, ranging from e-powertrain and e-transmission operations to battery cell chemistry and production and digital cockpit and personalized connected services. These partnerships in theory provide Stellantis the opportunity to leverage not only in-house competencies, but also the expertise of the partners to bring new technology to market more rapidly, while optimizing capital allocation to further enhance Stellantis competitiveness in the marketplace.
Stellantis revealed the following Brand statements expressing the electrification approach:
- Abarth – “Heating Up People, But Not the Planet”
- Alfa Romeo – “From 2024, Alfa Becomes Alfa e-Romeo”
- Chrysler – “Clean Technology for a New Generation of Families”
- Citroën – “Citroën Electric: Well-Being for All!”
- Dodge – “Tear Up the Streets… Not the Planet”
- DS Automobiles – “The Art of Travel, Magnified”
- Fiat – “It’s Only Green When It’s Green for All”
- Jeep – “Zero Emission Freedom”
- Lancia – “The Most Elegant Way to Protect the Planet”
- Maserati – “The Best in Performance Luxury, Electrified”
- Opel/Vauxhall – “Green is the New Cool”
- Peugeot – “Turning Sustainable Mobility into Quality Time”
- Ram – “Built to Serve a Sustainable Planet”
- Commercial Vehicles – “The Global Leader in e-Commercial Vehicles”