Stellantis (STLAM.MI) is prepared to fiercely compete in Europe’s electric vehicle (EV) market amidst strong competition from Chinese carmakers, according to CEO Carlos Tavares. Speaking on Monday at the unveiling of Stellantis’ new EV production line in Serbia, Tavares made it clear that the company is ready to face the challenges head-on.
“We are going to be challenged and I would say brutally challenged by the Chinese offensive on the European market,” Tavares stated. “At Stellantis, we are ready for the fight.”
Tavares emphasized the company’s commitment to proving its resilience and technological prowess. “We are going to demonstrate to them that we are hard working, we have the right technology, and we are a very fierce competitor,” he said.
Serbia, aiming to become a key European supplier of sustainable raw materials, batteries, and electric vehicles, signed a €190 million ($206.9 million) deal with Stellantis in 2022 for the production of an electric vehicle at its Kragujevac plant. The plant is expected to drive regional growth.
“This is a huge opportunity for us. We are the only country in the Western Balkan region that has electric car production,” Serbian President Aleksandar Vučić remarked at the ceremony for the new production line.
In a push towards a more sustainable economy, Serbia has reinstated a license for Rio Tinto (RIO.L, RIO.AX) to develop Europe’s largest lithium mine, a significant boost for the continent’s EV industry. The mine is projected to produce 58,000 tonnes of lithium annually, sufficient for about 1.1 million electric vehicles or roughly 17% of the European market.
On Friday, Serbia signed a deal with the European Union to grant the bloc access to raw materials mined in Serbia, enhancing their collaboration on sustainable raw material production, battery manufacturing, and EVs.
Ola Källenius, CEO of Germany’s Mercedes-Benz (MBGn.DE), indicated that his company is a potential customer for Serbian lithium and supports the expansion of the battery value chain in Serbia.
As Stellantis ramps up its EV production capabilities, the competition in Europe’s electric vehicle market is set to intensify, with major players ready to leverage technological innovations and strategic partnerships to secure their positions.