Leading Carmaker and French Research Organization Unite for Next-Generation Battery Development
PARIS: Stellantis, the global car manufacturer encompassing brands such as Peugeot, Fiat, and Chrysler, has announced a strategic partnership with the French state’s CEA research organization to pioneer the development of cutting-edge battery cells for electric vehicles (EVs).
“We recognize that battery technology is on the brink of significant advancements. Although the exact trajectory of these changes is unknown, we are dedicated to leading this evolution,” stated Stellantis Chief Engineering and Technology Officer, Ned Curic. “Our internal teams are tirelessly exploring multiple technological avenues, and we are forging close collaborations with tech startups, laboratories, universities, and esteemed research institutions like CEA. This partnership is expected to fast-track the development of groundbreaking battery cell technology, aligning with our mission to deliver clean, safe, and affordable mobility solutions to our customers.”
According to the International Energy Agency, global EV sales are projected to reach 16.6 million vehicles this year, up from 13.7 million in 2023, with China leading this growth. Despite the rising demand, EV adoption has been slower than anticipated due to high borrowing costs, economic uncertainties, and consumer preferences for gasoline-electric hybrids. In response, brands like Tesla have reduced prices and offered incentives to attract buyers.
Stellantis CEO Carlos Tavares highlighted the substantial benefits from the 2021 merger between Fiat-Chrysler and Peugeot maker PSA, noting synergies amounting to 8.4 billion euros ($9 billion) annually, more than double the initial target. The company also aims to reach the higher end of its 25% to 30% dividend payout policy by 2025, compared to the 25% payout in recent years. Shareholders are set to receive at least 7.7 billion euros ($8.31 billion) through dividends and buybacks this year.
Automakers worldwide are investing in advanced battery technologies to lower the costs of EVs. Analysts predict ongoing pressure to reduce manufacturing and battery expenses. As part of this effort, Stellantis is committed to being at the forefront of battery innovation, leveraging its partnership with CEA to accelerate the introduction of disruptive technologies in the EV sector.