By Kate Yuan

(JW Insights) Oct 27-- Netherlands-based auto company Stellantis plans to invest €1.5 billion ($1.58 billion) to buy a 20% stake in Chinese EV maker Leapmotor, the two companies announced on October 26.

Stellantis and Leapmotor will establish Leapmotor International, a 51/49 Stellantis-led joint venture that has exclusive rights for the export and sale, as well as manufacturing, of Leapmotor products outside Greater China. The JV is expected to commence its export operations in the second half of 2024, according to the announcement.

“As consolidation unfolds among the capable electric vehicles startups 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,” said Stellantis CEO Carlos Tavares.

Stellantis aims to leverage Leapmotor's innovative and cost-effective electric vehicle ecosystem to help achieve its electrification goals outlined in the "Dare Forward 2030" strategic plan. Both parties may further explore synergies for mutual benefits.

Stellantis will have two seats on Leapmotor's board of directors and appoint the CEO of the joint venture.

In 2022, Leapmotor delivered 111,000 new energy vehicles. Over the next three years, Leapmotor plans to develop "pure electric + range-extended dual-power" intelligent vehicles from A to E segments based on one technical architecture and three vehicle platforms.

Stellantis was established in early 2021 through the merger of the former PSA Group and the former FCA Group. In 2022, Stellantis sold over 6 million vehicles globally, generating a net revenue of €179.6 billion ($189.3 billion). In the first half of 2023, Stellantis achieved a net revenue of €98.4 billion ($103.7 billion).