Beijing (ZXZC)- On October 26, an ambitious partnership was unveiled as Stellantis N.V. plans to invests approximately €1.5 billion to acquire a 20% stake in Chinese new energy vehicle (NEV) manufacturer Leapmotor. 

Signing ceremony; photo credit: Stellantis

This strategic move establishes Stellantis as a significant shareholder in the Chinese company. Alongside this investment, the deal outlines the formation of Leapmotor International, a joint venture predominantly led by Stellantis, with a 51/49 ownership structure.

A notable aspect of this collaboration is that Leapmotor International secures exclusive rights for the export, sale, and manufacturing of Leapmotor products outside Greater China. This groundbreaking agreement signifies a first-of-its-kind global electric vehicle relationship between a major automaker and a Chinese dedicated NEV maker.

The primary goal of this partnership is to bolster Leapmotor's presence in China, the world's largest automotive market, and leverage Stellantis' established global commercial network to expedite the expansion of Leapmotor's brand in other regions, with a particular focus on Europe. By tapping into Leapmotor's highly innovative and cost-efficient NEV ecosystem in China, Stellantis aims to meet its core Dare Forward 2030 electrification targets, while also exploring opportunities for mutually beneficial synergies. The joint venture anticipates commencing shipments in the second half of 2024.

Both companies view Leapmotor's NEV product offerings as a complement to Stellantis' existing technology and portfolio of iconic brands, promising to deliver more accessible mobility solutions to a global customer base. Stellantis will have a significant presence within Leapmotor, securing two seats on the company's Board of Directors and appointing the CEO of the Leapmotor International joint venture.

Carlos Tavares, CEO of Stellantis, expressed his enthusiasm for the partnership, stating, "As consolidation unfolds among the capable electric vehicles start-ups in China, it becomes increasingly apparent that a handful of efficient and agile new generation EV players, like Leapmotor, will come to dominate the mainstream segments in China. Through this strategic investment, we can address a white space in our business model and benefit from Leapmotor’s competitiveness both in China and abroad."