Stellantis Considers Using Chinese EV Technology To Save Money

Stellantis is looking east as it recalibrates its electric vehicle strategy, deepening its relationship with Chinese EV maker Leapmotor in a move that could reshape how several of its European brands approach electrification.

The two companies formalized their partnership in 2023, when Stellantis acquired a 20 percent stake in Leapmotor for $1.1 billion. The deal also established Stellantis as the exclusive distributor of Leapmotor vehicles in Western markets through a joint venture known as Leapmotor International. Now, according to reports from Automotive News citing unnamed sources, Stellantis is exploring ways to go beyond distribution and incorporate Leapmotor’s battery and electric powertrain technology into its own products.

If those discussions progress, brands such as Fiat, Opel, and Peugeot could eventually use Chinese-developed EV architectures.

For Stellantis, the appeal is clear. Leveraging an existing platform and battery system would cut development time and reduce the capital required to bring new electric models to market. That matters after the company disclosed €22.2 billion (approximately $26.1 billion) in write-downs and charges tied to its EV strategy earlier this month.

Stellantis faces growing pressure in Europe from both established rivals like Volkswagen Group and Renault, as well as Chinese manufacturers including BYD and SAIC-owned MG. Chinese automakers have gained traction by moving quickly and aggressively on pricing, often underpinned by in-house battery technology and vertically integrated supply chains. Access to Leapmotor’s systems could help Stellantis close cost gaps and respond more quickly in the small- and midsize-EV segments that are critical in Europe.

There are complications, particularly in the United States. New rules set to take effect in 2027 will prohibit the sale or import of vehicles that rely on certain connected technologies linked to China. Any deeper technical integration between Stellantis and Leapmotor would need to account for those restrictions, potentially limiting the use of Chinese-developed systems in North America.

Through the Leapmotor International joint venture, Stellantis has already introduced Leapmotor models such as the C10 and B10 to markets including Europe and Australia. The small T03 city car was briefly assembled in Poland before production ended amid shifting trade dynamics. Stellantis now plans to begin building Leapmotor vehicles at its Zaragoza plant in Spain, further localizing production for European buyers.

After scaling back parts of its in-house EV roadmap, Stellantis appears to be balancing cost discipline with the recognition that electrification remains unavoidable in key markets. Tapping into Chinese-developed technology offers a faster, less capital-intensive route—but one that comes with geopolitical and regulatory risks.

This article was co-written using AI and was then heavily edited and optimized by our editorial team.

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