Stellantis to Invest €30 Billion in Electrification by 2025

Stellantis' Significant Investment in Electrification

Stellantis, a leading global automotive manufacturer formed through the combination of Fiat Chrysler Automobiles and Groupe PSA, is committing €30 billion ($35.5 billion) to electric vehicles (EVs) and innovative software development over the next four years.

Transitioning Away from Internal Combustion Engines

This substantial investment signifies a major strategic shift towards phasing out internal combustion engine vehicles. The company’s plan aligns with industry trends, as competitors like General Motors and Volkswagen are also dedicating significant funds to EV initiatives throughout this decade.

Future EV Models

Among the planned developments are fully electric versions of iconic models, including a Dodge muscle car and a Ram pickup truck, both slated for release by 2024. Furthermore, Stellantis intends to provide an electric or plug-in hybrid option across every vehicle segment within its Jeep brand by 2025.

Sales Targets for Low-Emission Vehicles

CEO Carlos Tavares announced during the company’s inaugural EV Day that the objective is to achieve sales of 70% low-emission vehicles (including plug-in hybrids) in Europe and 40% in the U.S. by the year 2030.

Addressing Past Electrification Pace

While acknowledging a comparatively slower start to electrification than some rivals, Stellantis attributes this to its portfolio’s focus on high-performance and heavy-duty vehicles. The company manages a diverse range of brands, encompassing Jeep, Chrysler, Ram Trucks, and Dodge, as well as European marques like Peugeot, Vauxhall, Citroen, and Fiat.

Battery Production Capacity

To support its electrification strategy, Stellantis plans to establish a battery production capacity of 130 gigawatt hours by 2025. This will be expanded to approximately 260 gigawatt hours by 2030, distributed across five manufacturing facilities in North America and Europe.

Battery Technology Development

The company will utilize two distinct battery chemistries starting in 2024, with ongoing research and development focused on solid-state battery technology, aiming for implementation by 2026.

Dedicated EV Platforms

Stellantis is developing four dedicated EV platforms to cater to diverse vehicle needs. These include: Small, designed for urban driving; Medium, for premium vehicles; Large, for performance and muscle cars; and Frame, specifically engineered for trucks and heavy-duty applications.

Range and Cost Reduction

These platforms are projected to offer a driving range of up to 300 miles for the Small platform and up to 500 miles for the Large and Frame platforms. Stellantis CFO Richard Palmer stated the company aims to reduce battery costs by 40% by 2024.