Milan, Italy

The world’s fourth largest automaker, Stellantis, will work with U.S.-based Zeta Energy to develop lithium sulfur batteries aimed to lower the cost of electric vehicles. Announced Thursday, the collaboration has a 2030 target date for the introduction of this technology, which the companies say is crucial to furthering the marketisation of EVs.  

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The problem with lithium ion technology is it is very costly and includes expensive component materials like nickel and cobalt, both of which are the two biggest contributors to EV battery prices. In contrast, lithium sulfur batteries are much more cost effective. Right now these battery are not as durable as their lithium ion counterparts, but they’re a lot cheaper to manufacture.  

Stellantis and Zeta Energy said in a joint statement that the lithium-sulfur batteries could cut costs by more than half per kilowatt-hour over existing lithium-ion batteries. The companies stated that this breakthrough could lead to lighter batteries with the potential for energy similar to that of today’s lithium ion technology.  

Bearing all that promise, the innovation would bring lighter battery packs with the same energy output as current models that could offer longer range or better handling or even better performance. The batteries could trim fast charging times by up to 50 percent too, the companies said.  

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Sustainability and Strategic Goals

That fits in with Stellantis' wider aim to reach carbon neutrality by 2038. Stellantis Chief Technology Officer Ned Curic said this innovation was key to meeting sustainability targets. Curic said that ‘groundbreaking battery technologies such as lithium sulfur’ could help us give our customers the best ideal range, performance and affordability.  

Plant Manufacturing and Supply chain Plans

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The agreement also covers development of pre-production and advances towards scalable manufacturing based on existing gigafactory infrastructure. In order to keep it efficient and sustainable, the batteries will be reliant on a short, fully domestic supply chain in Europe or North America.  

Stellantis is also supporting Lyten, a Silicon Valley startup developing lithium-sulfur battery technology. Lyten recently announced plans to invest over USD 1 billion in Nevada to build the first gigafactory for lithium-sulfur batteries, underscoring Stellantis’ commitment to advancing next-generation battery solutions.  

This partnership marks a significant step forward in reducing EV costs while maintaining performance, a critical factor in accelerating the transition to electric mobility.