Stellantis to invest $35 billion in EV development through 2025

On Thursday, Stellantis announced a comprehensive electrification plan for all 14 brands at their EV Day 2021 virtual event. Stellantis CEO Carlos Tavares detailed the carmaker’s intentions to invest $35 billion in EV development through 2025 with their global sights set on EVs comprising 70% of their European sales and 40% of North American sales by 2030. As well, the broad strokes were laid out for platforms and battery designs to be shared across the brands.

Investment prioritizes parity

The EV Day 2021 event recognized that affordability is a significant hurdle for EV adoption. The stated goal is for the total cost of ownership for electrified vehicles under the Stellantis umbrella to be “equivalent to internal combustion engines by 2026”. That will be achieved by lowering battery costs through sourcing and manufacturing strategies with the intent to lower battery pack costs by 40% from 2020 to 2024. A further 20% is expected to pare off by 2030.

Tavares said at the event, “The customer is always at the heart of Stellantis and our commitment with this €30 billion ($35 billion USD) plus investment plan is to offer iconic vehicles that have the performance, capability, style, comfort, and electric range that fit seamlessly into their daily lives. 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.”

Benchmarks for batteries and charging were laid out during the event also. Stellantis expects to deliver BEVs with ranges between 300 and 500 miles on a full charge along with “class-leading fast charging capability of 20 miles per minute”.

Four platforms to underpin electric models

Across all 14 brands, Stellantis plans to implement four EV platforms that can be scaled for length and width, and can share components:

• STLA Small, with a range up to 300 miles
• STLA Medium, with a range up to 440 miles
• STLA Large, with a range up to 500 miles
• STLA Frame, with a range up to 500 miles

Battery technology is also under development. By 2024, Stellantis plans to offer two types of battery design with differing chemistry: a high energy-density version akin to popular designs now as well as a nickel cobalt-free alternative that’s more environmentally conscious.

Stretching beyond, Stellantis also targets 2026 for the introduction of the “first competitive solid-state battery technology” that has even higher energy density, a longer service life, and a safer, smaller package.

Tavares said, “Our electrification journey is quite possibly the most important brick to lay as we start to reveal the future of Stellantis just six months after its birth, and now the entire company is in full execution mode to exceed every customer’s expectations and accelerate our role in redefining the way the world moves.

“We have the scale, the skills, the spirit, and the sustainability to achieve double-digit adjusted operating income margins, lead the industry with benchmark efficiencies and deliver electrified vehicles that ignite passion.”

The carmaker is planning five “gigafactories” between Europe and North America in the coming years. They’ve already established MOUs with two lithium geothermal brine processors to shore up supply of the critical battery material.

Later start to widespread EV integration

Earlier this year, Stellantis stated they would offer an electrified variant of each model across all nameplates by 2025 with 10 hybrid, plug-in hybrid, or all-electric models coming in 2021. Yet, there are few that have hit the market to date, and next to no all-electric models aside from the Fiat 500e. Globally, 29 models are electrified, almost exclusively as hybrids.

Thursday’s event shows Stellantis’ commitment to electrification through the decade. Now, it seems like Toyota might be the only major car manufacturer left to get on board.

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