Stellantis shifts to LFP batteries

Stellantis, a major European carmaker, has announced it will use LFP (lithium-ferrophosphate) batteries in many of its electric models starting in 2027, reversing earlier preferences for NMC (nickel-manganese-cobalt) batteries. This change is part of a strategy to cut costs and improve competitiveness in the European market.

Cost advantages of LFP batteries

LFP batteries are significantly cheaper than NMC batteries, with a 40% cost difference per kWh in 2025, according to the International Energy Agency. This cost advantage is partly due to LFP's use in stationary storage, but it still makes LFP a more affordable option for electric vehicles. Stellantis aims to leverage this to lower vehicle prices.

Fiat 500e to benefit from the shift

The Fiat 500e, currently priced at around 23,900 euros in France, will be one of the first models to use an LFP battery in 2027. This change is expected to reduce its starting price to about 20,000 euros. The move could have helped the model avoid a decline in sales and the need for a hybrid version.

STLA One platform and Saragosse plant

Stellantis is also focusing on the STLA One platform, a new modular design for electric vehicles. The next-generation Peugeot e-208 will be the first model built on this platform in 2027. To ensure a stable supply of LFP batteries, the company is building a joint plant with Chinese manufacturer CATL in Saragosse, Spain.

Training and timing of the shift

The Saragosse plant, which will cost 4.1 billion euros, is expected to start operations in early 2027. Workers from the site are currently being trained in China to be ready when production begins. Stellantis' decision to switch to LFP batteries, while practical, came later than some competitors, reflecting a broader industry shift in strategy.