Stellantis, home to brands such as Jeep and Chrysler, has become the latest global automaker to tie up with a Chinese startup as the electric vehicle (EV) race continues to heat up.
The Dutch group announced Thursday it would acquire a 20% stake in Leapmotor, a Hangzhou-based EV maker, for about €1.5 billion (nearly $1.6 billion).
The two will form a joint venture that will give Stellantis the exclusive rights to produce, export and sell the Chinese brand’s vehicles outside Greater China. The plan is to start by entering the European market.
Stellantis will control the joint venture, with a 51% stake, while Leapmotor will take a 49% share. The new business expects to start shipments in the second half of 2024.
The deal will allow Stellantis to leverage the startup’s “cost-efficient EV ecosystem” for its own fleet goals, which include a pledge to offer more than 75 fully electric models by 2030.
Chinese brands are catching more attention from established automakers because of their ability to produce EVs at rapid speed and lower cost, allowing them to charge consumers less.
