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AMSTERDAM, 26 October 2023: Stellantis NV and Leapmotor are joining forces in a strategic partnership that involves a substantial investment of approximately USD 1.58bn (€1.5bn). This investment marks Stellantis as a major shareholder in Leapmotor and introduces a pioneering joint venture, Leapmotor International, responsible for exporting, selling, and manufacturing Leapmotor products outside Greater China. This collaboration represents a groundbreaking global electric vehicle initiative, fusing a leading automaker with a Chinese pure-play new energy vehicle (NEV) OEM.
A Vision for the Future
The primary goal of this partnership is to enhance Leapmotor’s sales in China, the world’s largest automotive market. Leveraging Stellantis’ extensive global commercial presence, the collaboration intends to expedite Leapmotor’s brand sales in other regions, starting with Europe. The joint venture anticipates commencing shipments in the latter half of 2024.
Complementary EV Offerings
Both companies see the EV product lineup of Leapmotor as a complementary addition to Stellantis’ current technology and brand portfolio. This partnership aims to provide more affordable mobility solutions to customers worldwide. Stellantis will hold two seats on Leapmotor’s Board of Directors, and the CEO of the Leapmotor International joint venture will be appointed by Stellantis.
A Strategic Investment
Stellantis CEO Carlos Tavares views this collaboration as a significant step in supporting the global expansion ambitions of Leapmotor, recognizing it as a remarkable new EV player. The investment is strategically positioned to tap into the white space in Stellantis’ business model, capitalizing on Leapmotor’s competitiveness both in China and on a global scale.
Leapmotor’s Impressive Track Record
Leapmotor stands as one of the fastest-growing Chinese pure-play new energy vehicle tech leaders. Their unique vertical integration model, coupled with in-house research and development and manufacturing capabilities, sets them apart in the EV landscape.
China’s Growing EV Market
Focused on the mid-to-high end market, which is the largest and fastest-growing segment in China, Leapmotor delivered approximately 111,000 NEV units in 2022, placing them in the top tier among China’s NEV pure-play automakers. Over the next three years, Leapmotor’s product plan will cover the complete range of A- to-E segments, featuring a highly scalable platform that includes battery electric vehicles (BEVs) and Range Extender EV powertrains.
Innovative Technology and Vertical Integration
Leapmotor is known for pioneering the implementation of Cell-to-Chassis technology on a large scale. Their ‘Four-Leaf Clover’ Leap 3.0 central-controlled architecture enhances collaboration within the core components of smart EVs. This unique vertical integration model allows Leapmotor to quickly adapt to customer needs.
Stellantis: A Global Mobility Giant
Stellantis, founded in early 2021 but backed by over a century of automotive experience, boasts 14 iconic automotive brands and two mobility businesses. The company operates across more than 30 countries, with customers in over 130 markets. In 2022, Stellantis shipped over 6 million vehicles, generating USD 189.36bn (€179.5bn) in net revenues and USD 17.72bn (€16.8bn) in net profit.
Electrification for a Sustainable Future
Stellantis is investing over USD 52.75bn (€50bn) in electrification over the next decade, with a strong commitment to reaching Dare Forward 2030 targets. These targets include achieving 100% passenger car BEV sales in Europe and 50% passenger car and light-duty truck BEV sales in the United States by 2030. This substantial investment also includes securing approximately 400 GWh of battery capacity and aligning with carbon net-zero goals.
Regulatory Approval Required
Please note that this transaction is subject to customary closing conditions, including regulatory approvals.
Conclusion
Stellantis’ strategic investment in Leapmotor is a significant step towards enhancing the global electric vehicle landscape. This partnership not only accelerates the growth of innovative electric vehicles but also represents a pioneering step in the automotive industry. It brings together a powerful legacy automaker with a dynamic Chinese NEV innovator, setting the stage for a bright and electrifying future for mobility around the world.
