According to people familiar with the matter, Stellantis Group is currently discussing with the Italian government the conditions for building a large battery factory in Rome to support the realization of its vehicle electrification goal.

It is reported that the current discussion on the establishment of a super factory is still in the stage of principle exchange.

The Stellantis Group was formed by the merger of Fiat Chrysler Automobiles and PSA Group in January this year. According to the electrification goal of the Stellantis Group, the company plans to have electric versions of all its European car lines by 2025, and the sales of hybrid and pure electric vehicles will account for 70% of its total European sales in 2030.

Based on the above goals, Stellantis Group is actively promoting the layout of the battery sector. Before considering building a large battery factory in Italy, Stellantis Group has teamed up with energy giant Total to form a joint venture called Automotive Cells Company, which will build two battery factories in Dufferin, France and Kaiserslautern, Germany.

The total investment scale of the above two factories will reach 5 billion euros, with a total planned production capacity of 48GWh.

In April this year, Carlos Tavares, CEO of Stellantis Group, said that in order to promote the transformation of electrification, Stellantis Group will decide where to set up its third battery factory by the end of 2021. This time, the Stellantis Group contacted the Italian government, or hinted that its third factory may land in Rome, Italy.

It is worth mentioning that as part of the 205 billion euro recovery plan, the Italian government plans to spend nearly 24 billion euros on the transition to clean energy and sustainable transportation. Among them, Rome plans to invest 1 billion euros to strengthen its battery, solar and wind energy industries.

At present, Europe is becoming another important market for new energy vehicles in the world. With the support of high subsidies and other policies, mainstream European car companies are transforming to electrification and setting sales targets for electric vehicles. It is worth noting that compared with China, Japan, and South Korea, the European battery industry is still in its infancy, and the production capacity of power batteries is relatively small. However, under the active promotion of car companies and governments, the European power battery industry has been rising rapidly in recent years. On the one hand, companies from Asia such as Ningde Times, LG New Energy, Samsung SDI, Funeng Technology, Honeycomb Energy, Envision AESC, etc. They all have factories in Europe; on the other hand, local European battery companies are also rapidly investing in construction. Northvolt, Britishvolt, Freyr, Verkor, etc. have also laid out and invested in multiple power battery projects in recent years.