Stellantis CEO Carlos Tavares is gearing up for a tough competition with Chinese carmakers in Europe’s electric vehicle market. With the opening of a new EV production line in Serbia, Tavares emphasized the group’s readiness to face the challenges posed by Chinese car manufacturers. He expressed confidence in Stellantis’ work ethic, technology, and competitiveness in the market.
Serbia, aiming to establish itself as a significant European supplier of sustainable raw materials, batteries, and electric vehicles, sealed a 190 million euro deal with Stellantis in 2022 for the production of electric vehicles at its Kragujevac plant. This partnership is expected to be a catalyst for economic growth in the region, providing a significant opportunity for Serbia to lead in electric car production within the Western Balkans.
In line with its commitment to a more sustainable economy, Serbia has granted a license to Rio Tinto to develop Europe’s largest lithium mine, with an anticipated annual output of 58,000 tons of lithium. This move could potentially support the production of about 1.1 million electric vehicles or 17% of the European market’s demand for lithium. Furthermore, Serbia recently signed an agreement with the European Union to facilitate access to raw materials mined in the country, strengthening cooperation in sustainable raw materials production, battery manufacturing, and electric vehicles.
The CEO of Mercedes-Benz, Ola Kaellenius, expressed interest in sourcing lithium from Serbia for his company and indicated support for expanding the battery value chain in the country. This collaboration could further enhance Serbia’s position as a key player in the electric vehicle industry and solidify its role as a strategic partner for European automakers.
As the automotive industry continues to shift towards electric vehicles, partnerships like the one between Stellantis and Serbia are essential for fostering innovation, sustainability, and competitiveness in the market. The developments in Serbia highlight the country’s potential to become a hub for electric vehicle production and a significant contributor to Europe’s transition to a greener automotive sector. The collaboration between Stellantis and Serbia exemplifies the importance of strategic alliances in driving progress towards a more sustainable future for the automotive industry.