Stellantis NV has plans to invest $1.59 billion to acquire about 20% of Leapmotor, including a deal to sell Leapmotor’s clean vehicles outside of China.
Through the new partnership, Stellantis aims to accelerate Leapmotor brand sales in new regions, starting with Europe, while also boosting sales already occurring in China. Leapmotor produces vehicles classified as NEVs, a category that encompasses plugin electric and hybrid vehicles. According to Stellantis, the partnership will represent the industry’s first global electric vehicle relationship between a leading automaker and a Chinese pure-play NEV original equipment manufacturer.
Leapmotor’s EVs will reportedly complement Stellantis’ current portfolio of 14 brands, such as Jeep, Chrysler, and Dodge. Leapmotor currently stands as one of the top-tier NEV automakers in China, delivering about 111,000 NEV units in 2022. In the next three years, Leapmotor expects to cover the full spectrum of A to E car segments, according to the company, offering a wide range of cost-effective electric models.
“As consolidation unfolds among the capable electric vehicles start-ups in China, it becomes increasingly apparent that a handful of efficient and agile new generation EV players, like Leapmotor, will come to dominate the mainstream segments in China,” said Carlos Tavares, CEO of Stellantis. “We feel it’s the perfect time to take a leading role in supporting the global expansion plans of Leapmotor, one of the most impressive new EV players who has a similar tech-first, entrepreneurial mindset to ours.”
Partnership Follows Stellantis EV Battery Recycling Partnership
The plan includes several goals towards achieving net zero emissions by 2038 while also aiming to double net revenues by 2030, compared to 2021 levels. This involves increasing recycling revenue by 10 times and working to achieve more than $2.1 billion in circular economy revenue by 2030.
Between these two new partnerships, Stellantis invests heavily in electrification, working towards targets of reaching a 100% passenger car BEV sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by 2030.
“Through this strategic investment, we can address a white space in our business model and benefit from Leapmotor’s competitiveness both in China and abroad,” said Tavares.