Stellantis earns 30 billion euros in the electric car market

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First-half margins for the highest full-year target of 5.5% to 7.5% ‘on track’ to exceed first-year target, Stillants will hold ‘EV Day 2021’ later on Thursday

MILAN/DEtroit (Reuters) – Stylantis Corporation (STLA.MI), the world’s fourth-largest auto maker, said Thursday it plans to invest more than 30 billion euros ($35.54 billion) through 2025 in electrifying its range of cars.

The company, which was formed in January from the merger of Italian-American automaker Fiat Chrysler and France’s PSA, said its strategy will be backed by five battery plants in Europe and North America as it prepares to compete with the leader in electric vehicles (EV). Tesla (TSLA.O) and other automakers globally.

“This turnaround period is a great opportunity to reset the clock and start a new race,” Stellants CEO Carlos Tavares said in a webcast. “The group is at full speed on its electric journey.”

Stellantis said at “EV Day 2021” that it is targeting more than 70% of sales in Europe and more than 40% in the United States to be low-emissions vehicles – whether battery powered or hybrid electric – by 2030. It aims to make the total cost of owning a car An electric model will be the same as a petrol model by 2026.

It said all of its 14 brands – including Peugeot, Jeep, Ram, Fiat and Opel – will offer fully electric cars. Another focus will be on electrifying its range of commercial vehicles, and rolling out hydrogen fuel cell mid-size trucks by the end of 2021.

Stellantis said Thursday that one of its five battery plants will be at its engine facility in Termoli, Italy, joining previously announced plants in Germany and France. The automaker also said it would place one in the United States.

It wants to secure more than 130 GWh of battery capacity by 2025 and more than 260 GWh by 2030. Stellantis said it has signed MOUs with two geothermal lithium processing partners in North America and Europe to ensure supplies of lithium, an essential raw material for batteries.

Stellantis said it aims to reduce battery pack costs by more than 40% from 2020 to 2024 and more than an additional 20% by 2030. It plans to use two battery chemical compounds by 2024 – a high energy density option and a nickel-cobalt – free alternative. By 2026, it intends to introduce solid state batteries.

The car manufacturer said its electric vehicles will be built on four electric platforms and have a range of 500 to 800 kilometers (300 to 500 miles) on a single charge and a fast charging capacity of 32 kilometers (20 miles) per minute.

Synergistic fusion

At a separate electric vehicle strategy event last week, French rival Renault said 90% of its flagship brand models will be all-electric by 2030, while it had previously included hybrids in its target. Read more

Germany’s Volkswagen (VOWG_p.DE), the world’s second largest automaker after Toyota (7203.T), expects fully electric cars to make up 55% of its total sales in Europe by 2030, and more than 70% of sales at its site . Volkswagen brand. Read more

General Motors (GM.N) said last month that it plans to spend $35 billion through 2025 on electric and self-driving cars. It has set the goal of selling all new light-duty cars and trucks zero emissions by 2035. Read more

Earlier on Thursday, Stellantis indicated that 2021 is off to a better-than-expected start despite the global shortage of semiconductor chips.

Stellantis said its adjusted operating profit margins in the first half of 2021 are expected to exceed an annual target of 5.5% to 7.5%, despite production losses due to the semiconductor supply crunch.

She said the synergies resulting from its merger is on track to exceed the first year target and will help contribute to positive cash flow for the year as a whole. Stellantis has promised more than 5 billion euros ($5.9 billion) in annual synergies.

Shares of Stellantis extended losses after the automaker’s announcement of electric vehicles and were last down about 3.2% in Milan.

(1 dollar = 0.8442 euros)

Additional reporting by Clement Martinnot and Ben Klayman in Detroit. Editing by Anisska Flack, David Clarke and Paul Simao

Our Standards: Thomson Reuters Trust Principles.

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