Stellantis Leapmotor Spain BEV Production Plan Signals Localised Chinese EV Strategy

Stellantis

Stellantis Leapmotor Spain BEV production plans could mark a new phase in Europe’s electric vehicle supply chain, as western automakers look to combine local assembly with lower-cost Chinese components. Stellantis and Leapmotor are considering new battery electric vehicle lines at Zaragoza and Villaverde in Spain through their Leapmotor International joint venture.

Stellantis Leapmotor Spain BEV production would move the partnership beyond vehicle imports and toward European manufacturing. That shift matters because local content rules, tariff risk and regional supply security are becoming more important in the EV market.

Stellantis Leapmotor Spain BEV production could also help the companies respond to weaker European affordability conditions. Chinese component sourcing can lower cost, while Spanish assembly may improve regulatory and commercial positioning inside Europe.

The companies have not disclosed production targets, utilisation rates or investment figures. This leaves the scale of the plan uncertain, but the strategic direction is clear.

Spain Could Become a European Platform for Leapmotor Models

Zaragoza could gain a new all-electric SUV line as early as this year. The plant has long been associated with Opel production and could become a base for new BEV output under the joint venture.

Villaverde in Madrid may also become more important to Leapmotor International. The plant faces a production gap after Citroen C4 output ends and may shift entirely to Leapmotor models by 2029.

That potential transition would give Stellantis a way to protect industrial activity at existing Spanish plants while adding lower-cost BEV models to its European portfolio.

The plan reflects a broader industry pattern. European automakers are trying to defend market share against Chinese EV competition while also using Chinese platforms, components and cost structures to improve competitiveness.

Stellantis bought a 21% stake in Leapmotor in 2023 and created a 51-49 joint venture to sell and manufacture Leapmotor vehicles outside China. Spain could now become one of the key production bases for that strategy.

For Spain, the opportunity is industrial. More BEV assembly could support jobs, supplier activity and demand for local logistics, batteries, wiring, aluminium components and electronics integration.

Local Assembly Meets Cost Pressure and Supply-Chain Rules

The move from imports to local production is strategically important. European BEV manufacturing is increasingly shaped by tariffs, local content rules, battery sourcing requirements and political pressure to keep vehicle production inside the region.

Leapmotor brings cost-competitive EV engineering and components. Stellantis brings European plants, distribution, regulatory experience and manufacturing scale.

This combination could help address one of Europe’s biggest EV problems: producing affordable electric vehicles while maintaining regional industrial capacity.

However, the lack of disclosed volumes makes the market impact difficult to judge. Without production targets, it is unclear whether the Spain plans will materially change Stellantis’ European BEV output.

Stellantis needs stronger BEV momentum. Its BEV sales accounted for around 13% of output in the first half of last year, behind Volkswagen and BMW, and the company later reported a major write-down after cutting prices.

Leapmotor is growing much faster. Its EV sales, including plug-in hybrids, more than doubled last year to 596,000 units. That growth gives Stellantis access to a Chinese partner with clear scale momentum.

The industrial implication extends into materials. More European BEV production increases demand for aluminium body and structural parts, copper wiring, electrical steel, battery materials, power electronics and lightweight components.

If the model works, Stellantis and Leapmotor could create a template for Chinese-designed, Europe-built EVs. That would reshape competition not only in vehicles, but also in the upstream materials and component chains that support regional BEV manufacturing.

The Metalnomist Commentary

Stellantis and Leapmotor are not only discussing new Spanish EV lines; they are testing a hybrid supply-chain model for Europe. Local assembly with Chinese components may become a practical route for automakers caught between cost pressure, tariff risk and the need to keep European factories active.

Leapmotor Flex-Fuel REEV Targets Brazil’s Ethanol-Based EV Market

Leapmotor

Leapmotor flex-fuel REEV development in Brazil marks a new attempt to adapt electric vehicle technology to local fuel economics. The Chinese automaker will develop what it describes as the world’s first flex-fuel range-extended electric vehicle, capable of using both gasoline and ethanol.

The project reflects Brazil’s unusual position in global mobility. The country has a large flex-fuel fleet, broad ethanol availability, and a consumer base that often chooses fuel based on pump economics.

Leapmotor flex-fuel REEV technology will be integrated into the C10 model, currently the only range-extended electric vehicle marketed in Brazil. The existing C10 uses a gasoline-powered internal combustion engine as a range extender, but the new version will be tailored to Brazil’s ethanol-heavy market.

Brazil’s Ethanol Market Changes the REEV Value Proposition

REEVs are driven only by electric motors. Their batteries can be charged externally or supported by an internal combustion engine that works only as a generator, extending driving range without directly powering the wheels.

In most markets, the range extender uses gasoline. In Brazil, however, ethanol changes the economics because sugarcane-based ethanol is widely available and often cheaper than gasoline.

That gives the Leapmotor flex-fuel REEV a more localized cost advantage. Drivers could benefit from electric propulsion while using ethanol to extend range when charging access or travel distance becomes a concern.

Brazil already uses hydrous ethanol as a standalone fuel and gasoline blended with 30% anhydrous ethanol. This makes flex-fuel technology familiar to consumers and gives Chinese automakers a clear route to adapt electrified vehicles to local driving habits.

Chinese Automakers Localize Electrification Through Stellantis

Leapmotor’s plan follows a wider trend among Chinese automakers entering Brazil with localized hybrid and electric technologies. BYD and GWM have also been developing flex-fuel plug-in hybrid vehicles for the market.

Leapmotor’s international expansion is supported by Stellantis, which gives the Chinese brand a manufacturing and market access platform outside China. Stellantis said the C10 and the all-electric B10 will be produced at its factory in Pernambuco, in northeastern Brazil.

This production plan matters because Brazil’s EV market is still shaped by price, charging infrastructure, fuel availability, and local manufacturing policy. A flex-fuel REEV could reduce range anxiety while maintaining the operating-cost advantage that supports electrified vehicle adoption.

For the materials supply chain, the model still supports demand for batteries, copper, aluminium, power electronics, electric motors, and related components. However, it also shows that electrification pathways may differ by market rather than following a single global battery-only route.

The Metalnomist Commentary

Leapmotor’s Brazil strategy shows that electrification will not look the same in every market. In countries with strong biofuel infrastructure, flex-fuel range extenders could become a bridge between EV adoption, local fuel economics, and battery supply constraints.

Stellantis Struggles with EV Transition Amid Falling Market Share

Stellantis EV

Leapmotor JV Offers Strategic Hope as Tariffs and Costs Loom

Stellantis reported weaker-than-expected performance in 2024, citing operational hurdles during its electric vehicle (EV) transition.

The company’s latest annual report highlights missed targets and shrinking market share across core regions.

Total vehicle sales dropped to 5.7 million, down from 6.2 million in 2023.

Battery electric vehicle (BEV) sales also declined to 314,500 units, from 369,000 the previous year.

Chairman John Elkann stated the group performed “well below potential,” primarily due to supply disruptions and slow product transitions.

Aggressive price competition in China and weak demand in Europe weighed heavily on profit margins.

Market Share Declines Across North America and Europe

In North America, Stellantis market share fell to 8%, down from 9.6% in 2023 and 10.9% in 2022.

In Europe, it dropped to 17%, a significant decline from 18.3% in 2023 and 19.7% in 2022.

Stellantis’ performance lagged behind competitors in adapting to EV demand shifts, highlighting the urgency of supply chain and pricing strategy improvements.

Leapmotor Deal Critical to Global EV Strategy

The joint venture with China’s Leapmotor has emerged as a strategic lifeline.

Through Leapmotor International, Stellantis holds exclusive rights to manufacture and export Leapmotor EVs outside China.

Stellantis aims to use Leapmotor’s low-cost supply chains and compact EV technology to expand in Europe and other global markets.

Meanwhile, Leapmotor seeks to leverage Stellantis’ distribution footprint to scale its international presence.

Looking ahead, trade policies and tariffs remain a major concern.

Stellantis warned that shifting duties could increase production costs and affect component availability in 2025.

As EV competition intensifies and regulatory challenges rise, Stellantis must move swiftly to secure its future.

BYD’s Global EV Sales and Profit Surge in Q1 2024

BYD EV

Overseas Expansion and Battery Growth Fuel Record-Breaking First Quarter

Chinese automaker BYD achieved record-breaking global EV sales and profit growth in the first quarter of 2024. Despite slower domestic demand due to regional holidays and local competition, BYD's global reach drove strong performance.

The company sold 1 million electric vehicles worldwide in Q1, up nearly 60% year-on-year.

Sales dipped 35% from Q4, but BYD still delivered the most profitable first quarter in its history.

Competition intensified in China from local rivals such as Geely and Leapmotor.

Yet, BYD’s global sales momentum helped offset domestic market softness.

Overseas Markets and Battery Output Drive Growth

BYD sold 206,084 units outside China during Q1, more than double last year's overseas total. Brazil, its largest international market, accounted for 21,390 units, or nearly 10% of all exports.

Beyond vehicles, BYD strengthened its battery leadership. Its power battery and energy storage installations surged by 77%, reaching 52.5 GWh, the third-highest in company history.

BYD remains the second-largest battery producer in China, following CATL, and continues to expand rapidly in global battery markets.

Profit Nearly Doubles, Outpaces Tesla by Threefold

BYD earned $1.26 billion in profit in Q1 2024, nearly double the same period in 2023.

This figure exceeded internal forecasts by $260 million and was three times higher than Tesla’s profit for the quarter.

Quarterly revenue rose 36% to $23.3 billion, showcasing the company’s strong cost control and global sales strength.

As competition heats up in the EV sector, BYD continues to gain market share on both vehicle and battery fronts.

Stellantis and CATL Partner to Construct a €4.1 Billion Battery Plant in Spain

CATL

Stellantis, a prominent Franco-Italian-American automotive manufacturer, together with Chinese battery industry leader Contemporary Amperex Technology Co. Ltd (CATL), has announced an ambitious joint venture. The partnership plans to invest €4.1 billion ($4.3 billion) to establish a lithium iron phosphate (LFP) battery production facility in Zaragoza, Spain. Scheduled to commence operations by the end of 2026, the plant is projected to achieve an impressive output capacity of up to 50GWh annually. This capacity could supply electric vehicle (EV) batteries to approximately 1 million vehicles per year, based on an average battery pack size of 50kWh.

Strategic Expansion and Future Goals

This new venture builds on a prior preliminary agreement between Stellantis and CATL, further solidifying their collaboration. Strategically positioned adjacent to Stellantis’ existing automotive plant in Zaragoza—which has historically manufactured over 14 million Opel and Citroen vehicles since 1982—the battery facility represents a significant step toward supporting Stellantis' electric mobility ambitions. CATL, already operating two battery plants in Germany and Hungary and constructing another in Hungary, contributes extensive expertise and capacity to the partnership.

Market Dynamics and Company Prospects

Despite recent challenges, including declining sales in the European Union and the U.S. and intense competition from Chinese EV manufacturers that led to the resignation of CEO Carlos Tavares, Stellantis remains committed to its electrification strategy. The company has set ambitious targets, aiming for 100% EV sales in Europe and 50% in the U.S. by 2030. This is part of Stellantis' broader strategy to adapt to shifting market demands and increase its stake in the global EV market, which includes recent joint ventures with other major players like Samsung SDI, TotalEnergies, Mercedes-Benz, and Leapmotor.