Stellantis reportedly in talks with Rome to build gigafactory in Italy

Stellantis reportedly in talks with Rome to build gigafactory in Italy

Amsterdam, Netherlands-headquartered automotive manufacturer Stellantis NV is reportedly in talks in with Italian authorities to build a new gigafactory to accelerate its expansion into European electric mobility space.

Stellantis, which came into existence earlier this year as a result of the 50-50 cross-border merger between the Italy’s Fiat Chrysler Automobiles and France’s PSA Group, aims to offer electric versions of its entire European line-up by 2025.

The merged entity has also announced that battery-hybrid and fully battery-powered cars should make up at least 70 per cent of its European sales by the end of current decade (2030). Now, sources familiar with the auto giant’s plans to expand into electric mobility space have revealed that it is discussing conditions with authorities in Rome to build a large manufacturing facility in Italy to manufacture electric vehicles to meet growing demand for EVs in various European markets.

Speaking on the condition of anonymity, one of the sources said, “Discussions are just at the stage of an exchange on the principle of creating a gigafactory in order to cover (Stellantis’) future needs. These conditions will have to be studied with Italian authorities.”

The source stressed that nothing had yet been decided regarding the building of the gigafactory.

It may be noted here that Italy is one of the main manufacturing hubs for car manufacturer. Amid increasing demand for EV, a number of car manufacturers are either converting their conventional manufacturing plants into EV plants, or they are setting up entirely new manufacturing facilities to build electric cars.

Around a week ago, Stellantis Chief Executive Offcer (CEO) Carlos Tavares and Chairman John Elkann talked to Italy's industry minister Giancarlo Giorgetti. They discussed the auto giant’s needs in batteries and conditions to be fulfilled for a mega manufacturing facility.

However, when Stellantis was contacted and asked for a comment on the reported discussions with Italian authorities on the conditions of a gigafactory in Italy, it declined to comment. The sources said they could not publically reveal the discussions as the automaker has not officially made the talks public.

Italy is marching ahead with its €205 billion (US$251 billion) recovery plan, and almost €24 billion of that amount will be spent on the country’s transition to green energy and sustainable mobility to help trim down carbon emissions and avert global warming.