As per Reuters, the two EV specialized companies also announced a preliminary agreement to supply lithium iron phosphate batteries (LFP) for the production of Stellantis-made EVs in Europe. LFP batteries are cheaper to manufacture compared to other battery technologies, but they are also less powerful than nickel manganese cobalt (NMC) cells, as well.

Stellantis already implemented LFP batteries in some of the more affordable EVs offered by the group, such as the Citroen e-C3, which has a starting price of 23.300 euros. However, as per company officials, an even cheaper version, starting at 20.000 euros, is expected with a shorter range.

Maxime Picat, Stellantis Global Head of Purchasing and Supply Chain, said that "definitely what we are aiming at is to grow those LFP batteries on multi-segment, because affordability is needed on many different segments, being passenger vehicle or potentially commercial vehicles."

Stellantis is currently building three different facilities in Europe aimed at the manufacturing of its EVs in brands such as Fiat and Alfa Romeo. The three units, which will be hosted by France, Germany and Italy, are developed through its ACC joint venture with Mercedes-Benz and TotalEnergies.