Stellantis, a prominent automotive manufacturer, is planning to commence the production of electric drive modules (EDMs) at its facility in Szentgotthárd by the end of 2026, as reported by state news wire MTI. This forward-thinking decision is part of the company’s broader strategy to transition towards electric vehicle technology.
To accomplish this goal, Stellantis has committed to investing a substantial EUR 103 million at the Szentgotthárd plant, which currently focuses on producing 1.2-liter turbocharged three-cylinder and 1.6-liter four-cylinder internal combustion engines for various Stellantis brand vehicles. The incorporation of EDM production into the existing infrastructure of the plant will also require the upskilling of Stellantis employees to meet the manufacturing and assembly requirements of these advanced modules.
Minister of Foreign Affairs and Trade Péter Szijjártó announced that the Hungarian government would provide a HUF 10 billion grant for the project to show its support for the investment. Additionally, it is anticipated that this initiative will create 110 new employment opportunities in the region.
Stellantis has committed to investing over EUR 50 billion in electrification over the next decade, with the goal of achieving a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by 2030. The company also aims to secure approximately 400 GWh of battery capacity, with the support of six battery manufacturing plants in North America and Europe.
In November, Stellantis signed a memorandum of understanding with Chinese battery manufacturer CATL to locally supply LFP battery cells and modules for electric vehicle production in Europe.
This strategic shift towards electric vehicle production aligns with the global trend towards sustainable and environmentally-friendly mobility solutions. As Stellantis moves forward in this new era of automotive technology, it is evident that the company is positioning itself at the forefront of innovation and progress in the industry.
The significant investment in electrification marks a pivotal moment for Stellantis as it pursues a future that is not only environmentally responsible but also economically viable. This transition to electric vehicle technology underscores the company’s dedication to addressing the evolving needs of the market while also laying the groundwork for a more sustainable automotive landscape.
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