Stellantis Teams Up With Chinese EV Maker Leapmotor in Historic Deal

Stellantis has struck a landmark deal with Chinese electric vehicle maker Leapmotor. The agreement will see the two companies jointly produce EVs at Stellantis’s factory in Zaragoza, Spain. This marks the first time a major Western automaker has opened its European production lines to a Chinese brand.

The move comes as the EU raises trade barriers against Chinese electric vehicles, making Stellantis’s partnership with Leapmotor a notable exception to the trend. Over the past decade, China has built a highly competitive EV supply chain. This shift in manufacturing strength coincides with the decline of traditional internal combustion engine (ICE) expertise, which once secured European automakers’ global dominance. The rise of electrification now offers China a chance to reshape the balance of power in the automotive industry.

Historically, major changes in energy and propulsion technology have always led to a reordering of global manufacturing leadership. Stellantis’s decision to collaborate with Leapmotor reflects this broader shift. The Zaragoza plant, which saw production drop from around 470,000 vehicles in 2019 to 304,000 in 2023, will now host Leapmotor’s electric models.

For Stellantis, the partnership is a strategic response to mounting pressure. As trade tensions grow, working with a Chinese EV specialist provides a way to stay competitive in an evolving market. The agreement will see Leapmotor vehicles rolling off Stellantis’s production lines in Spain. This deal highlights how the transition to electric mobility is altering long-standing industry dynamics. With China’s EV sector gaining ground, European manufacturers face both challenges and new opportunities for collaboration.