Stellantis is preparing to intensify its efforts in the European electric vehicle (EV) market, facing strong competition from Chinese manufacturers, according to CEO Carlos Tavares. At a presentation of the company’s new EV production line in Serbia, Tavares emphasized Stellantis’s readiness to compete robustly.
“We are going to be challenged and I would say brutally challenged by the Chinese offensive on the European market,” Tavares said. “At Stellantis we are ready for the fight.” He added that the company aims to prove its technological capabilities and competitive edge in the sector.
See also: Stellantis Plans Expansion of Affordable Hybrid Vehicles Amid Rising European Demand
The new production line is part of a 190 million euro ($206.9 million) investment deal between Stellantis and Serbia, finalized in 2022. The facility, located in Kragujevac, will focus on producing electric vehicles.
Serbian President Aleksandar Vucic highlighted the significance of the project, stating, “This is a huge opportunity for us. We are the only country in the Western Balkan region that has electric car production.”
See also: Stellantis Partners with French CEA to Develop Next-Generation EV Battery Cells
Serbia has been active in advancing its role in the European EV supply chain. The country has reauthorized Rio Tintoto develop Europe’s largest lithium mine, which could produce 58,000 tonnes of lithium annually.
This output is projected to supply around 1.1 million electric vehicles, representing about 17% of the European market.
See also: Stellantis Expands e-Routes App Across All Brands in U.S. This Summer
Additionally, Serbia signed an agreement with the European Union on Friday to enhance access to its raw materials and strengthen collaboration on sustainable materials, battery manufacturing, and EV production.
Mercedes-Benz has expressed interest in sourcing lithium from Serbia and supporting the expansion of the battery value chain in the region.
Stellantis Threatens to Shift EV Production from UK Over Stringent Sales Targets