The core issue with widespread electric vehicle adoption revolves around the high price tags associated with these vehicles, putting them out of reach for many potential buyers. And the leading reason EVs run so expensive comes down to the batteries that power them.
The main culprit for the high cost of EV batteries involves the materials they consist of: cobalt, manganese and lithium, all expensive to acquire and work with.
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The price of lithium has risen to such high levels that Tesla (TSLA) -) broke ground on its own in-house lithium refinery in May, around a year after CEO Elon Musk said that unless prices drop, Tesla would have to get into the business of "mining and refining directly at scale."
Stellantis (STLA) -), the legacy OEM behind Dodge, Chrysler, Ram and Jeep, is now looking to challenge Tesla on the battery stage as the company looks to ensure its position in a more electrified future.
As part of this push, the automaker officially opened a brand new Battery Technology Center in Turin, Italy, built to design, develop and test the battery packs and technology that will be used to power Stellantis vehicles.
The new factory represents a 40 million euro ($43 million) investment. The firm is also building similar battery technology center for North America in Windsor, Canada.
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“We are in the midst of a once-in-a-lifetime opportunity to redefine mobility, providing smart and sustainable solutions for our customers,” Ned Curic, Stellantis chief engineering and technology officer, said in a statement.
Stellantis plans to utilize the new facility to help expand its battery-building capacity to 400 GWh.
The company plans to sell only fully-electric cars in Europe by 2030, targeting a 50% EV sales mix in the U.S. by that timeframe. Securing the 400 GWh of battery capacity, Stellantis said, is critical to achieving that sales goal.
Stellantis' stock, up 28% for the year, rose slightly Friday.
If you work for Tesla, contact Ian by email ian.krietzberg@thearenagroup.net or Signal 732-804-1223
