- Stronger Leapmotor ties could sharpen its VW, Renault fight.
- A US ban on Chinese tech cars still poses a real hurdle.
- Stellantis booked $26.1 billion in EV strategy write-downs.
Stellantis is deepening its ties with China’s fast-moving EV sector as it searches for a more efficient path through the electric transition. In 2023, the group inked a deal with Chinese EV startup Leapmotor, purchasing a 20 percent stake in the firm for $1.1 billion. The agreement made Stellantis the exclusive distributor of Leapmotor models in Western markets.
Now, it appears the relationship could extend beyond distribution, with Stellantis potentially tapping into its partner’s EV technology for brands such as Fiat, Opel, and Peugeot.
According to Autonews, unnamed sources say Stellantis wants access to Leapmotor’s battery and EV powertrain technologies. It’s understood that discussions are in their early stages, but using Leapmotor’s systems would help Stellantis save billions of dollars in development costs, and allow it to more quickly roll out rivals to vehicles from Chinese competitors like BYD and MG, in addition to legacy brands including the VW Group and Renault.
Read: Stellantis’ Chinese Partner Built A Minivan That Makes The Pacifica Feel Ancient
However, actually using Leapmotor’s battery and EV technologies could prove challenging. For example, vehicles using connected systems linked to China will be banned from importation and sale in the US from 2027.
What’s Next for the Partnership?
While speaking about the collaboration between the two companies, Stellantis chief executive Antonio Filosa said the “technical partnership… will help us in getting to higher level of competitiveness especially with electric cars and it is very important for Europe.”
He added the partnership will also “improve our collaboration also on new tech development,” noting that “2025 was a year of strategic implementation for the partnership, setting the stage for deeper integration”, according to Autonews.
EV Write-Downs And Reset
Earlier this month, Stellantis announced write-downs and charges of €22.2 billion ($26.1 billion) as it scaled down its EV strategy. However, it knows it can’t back away from EVs entirely, hence why it’s interested in deepening its ties with Leapmotor.
Through the Leapmotor International joint venture, Stellantis has helped the Chinese brand launch several of its models, like the C10 and B10, in markets including Europe and Australia. For a brief period, it was also building the small T03 in Poland, but this ended last year amid fluctuations in international trade policies. This year, Stellantis plans to start building Leapmotor vehicles at its Zaragoza plant in Spain.
