Stellantis and Zeta Energy Collaborate on Lithium-Sulfur Batteries

MILAN (Reuters) – Stellantis (NYSE:STLA) has signed an agreement with U.S.-based Zeta Energy to develop low-cost lithium-sulfur batteries for electric vehicles, aiming for deployment by 2030.

With battery costs significantly impacting EV prices, automakers are seeking alternative technologies to make vehicles more affordable.

Unlike traditional lithium-ion batteries, lithium-sulfur batteries do not use expensive materials like nickel or cobalt, resulting in lower production costs, though they may have shorter lifespans.

"Lithium-sulfur batteries are expected to cost less than half the price per kWh of current lithium-ion batteries," Stellantis, the world's fourth largest carmaker, and Zeta stated in a joint announcement.

The goal is to create lighter batteries with energy potential comparable to current technologies, leading to significantly lighter battery packs with the same usable energy as existing lithium-ion batteries. This development could enable greater range, improved handling, and enhanced performance.

Additionally, such technology has the potential to increase battery fast-charging speeds by up to 50%. The agreement includes pre-production development and plans for future production by 2030.

"Groundbreaking battery technologies like lithium-sulfur can support Stellantis' commitment to carbon neutrality by 2038 while ensuring our customers enjoy optimal range, performance, and affordability," said Stellantis tech chief Ned Curic.

These batteries will be manufacturable within existing gigafactory technology, utilizing a short and entirely domestic supply chain in Europe or North America. Stellantis is also backing Silicon Valley startup Lyten, which recently announced plans to invest over $1 billion to build the world’s first gigafactory for lithium-sulfur batteries in Nevada.