Stellantis: Electric Strategy for the Future

It was a big year-end finale: Stellantis aims to achieve around 70 percent of its sales in Europe and 40 percent in the USA with "Low Emission Vehicles" by 2030. All brands are to be "converted": Fiat and Peugeot by 2030, Opel by 2028. More than 30 billion euros are to be invested in electrification and software by 2025. This was announced by CEO Carlos Tavares at the "Stellantis EV Day."

And because Tavares is considered a tough car-and-numbers guy, he wants to achieve an investment efficiency 30 percent better than the industry average – and to lead the way in terms of efficiency. In the medium term, 98 percent of models in Europe and North America are to be electrified. As early as 2026, he wants to achieve double-digit operating margins with new business models for electric cars.

Once again, Tavares presented the four pure electric platforms, of which even the "Stellantis Small" is to offer ranges of up to 500 kilometers, while the STLA (Stellantis Large) is to enable up to 800 kilometers – with real-world winter ranges likely to be around 300 (small) to 500 (large) kilometers. Tavares commented:

“This will allow us to meet the range requirements of customers in most segments – without them having to change the way they use their vehicle.”

Tavares calculates the battery demand at 260 GWh in 2030, with the corporation operating five factories and supply contracts to meet this demand. Following the battery factories of ACC in France and Kaiserslautern from PSA times, a former FCA plant in Italy is now being added, as Tavares announced:

“We have reached an agreement with the Italian government to develop our engine plant in Termoli into a battery factory.”

High battery capacities for all platforms

Interestingly, the performance brands are currently leading the way in electrification: Abarth is to become an electric brand by 2024, as are Dodge and Ram, which are planning pure EVs in 2024 – Chrysler could also bring an EV in 2024. It remains to be seen how they will manage with combustion engines. DS is to offer only electric models by 2026, Alfa Romeo is to follow in 2027 before Opel/Vauxhall becomes an all-electric brand in 2028. Fiat wants to wait for "cost parity between gasoline and electric cars" and Lancia is also likely to convert in the second half of the decade. Peugeot would be a later convert among Stellantis' European brands, with a target of 2030.

Jeep plans to offer plug-in hybrids in all segments by 2024. The four well-known platforms are then expected to cover the corporation's wide range (from the Fiat Panda to the Ram 1500): STLA Small, STLA Medium, STLA Large, and STLA Frame, the latter for commercial vehicles in "frame design" – as the ladder frame cannot and will not be dispensed with in the high-weight classes.

The platforms are to be designed around the battery pack to achieve the best efficiency. Platform manager Patrice Lucas explains:

“Each platform is designed for specific vehicle lengths and widths.”

All platforms share important components. Each platform is to be scaled up to two million units per year to realize cost advantages. Currently, the Large platform is important, as it is intended for vehicles between 4.70 and 5.40 meters in length and between 1.90 and 2.03 meters in width: eight models are already under development on this platform and are to be launched within three to five years. This is extremely important for replacing the completely outdated Chrysler and Dodge models, but Jeep, Maserati, and Alfa Romeo could also benefit. At the other end, the STLA Small, which is to offer battery capacities between 37 and 82 kWh – the latter should manage 500 kilometers. STLA Medium is designed for 87 to 104 kWh, STLA Large for 101 to 118 kWh. The batteries are significantly larger in the STLA Frame, the ladder frame platform for large pickups. To remain sufficient even with heavy loads, capacities between 159 and 200 kWh are planned here.

Two Cell Chemistries for Different Price Segments

The batteries are to use two cell chemistries: The more affordable version will do without nickel and cobalt. Stellantis plans to use lithium iron and manganese, among other things. These are expected to achieve an energy density of 400 to 500 Wh/l at the cell level and will be integrated into the vehicles using the cell-to-pack approach. This means the batteries will do without complex but flexible modules. The second cell chemistry is nickel-based and relies on a nickel-manganese cathode. At the cell level, the goal here is 600 to 700 Wh/l and the plan is to start with modules for now. Cell-to-pack is planned for 2026. By then, the first solid-state battery is also expected to be ready for use.

What Does This Mean?

2021 was a year of transition for Stellantis – now it seems that the realignment in hardware and software is complete. It will be interesting to see whether the giant can implement the changes quickly enough, as even the German conglomerates and premium brands are now receiving pressure from newcomers and car eliminators – a trend that has been exacerbated by the pandemic and chip shortage.