AMSTERDAM - In a move to enhance the electric vehicle (EV) landscape, Stellantis N.V. (NYSE:STLA) and France's Commissariat à l'Énergie Atomique et aux Énergies Alternatives (CEA) have embarked on a five-year research collaboration to develop next-generation battery cell technology. This partnership aims to create EV batteries that are not only more efficient and longer-lasting but also environmentally friendly and cost-effective.
The joint program, which falls under Stellantis' Dare Forward 2030 strategic plan, is set to focus on the in-house design of advanced battery cells. These efforts will include research on disruptive chemistries, life cycle assessment, and battery cell design and validation. The collaboration builds on a 20-year relationship between the two entities and reinforces Stellantis' commitment to becoming a carbon net zero corporation by 2038.
Stellantis' Chief Engineering and Technology Officer, Ned Curic, highlighted the importance of staying at the forefront of battery technology transformation. Curic emphasized the company's dedication to exploring various technologies and working with leading research institutions like CEA to accelerate the development of innovative battery solutions.
Philippe Stohr, Head of CEA's Energy division, expressed pride in supporting Stellantis with R&D efforts that leverage over 25 years of CEA's expertise in Li-ion battery technology. The goal is to speed up the design and fabrication processes while fostering a deep understanding of the most advanced cell technologies.
The outcome of this research is expected to benefit Stellantis and its joint venture gigafactories by providing next-generation EV batteries that are affordable and feature best-in-class technologies. The program also encompasses other areas of joint research, such as CO2 footprint research, battery modeling, fuel cell development, and connectivity.
This announcement is based on a press release statement and reflects a significant step in Stellantis' journey toward sustainable mobility, aligning with its broader vision to offer clean, safe, and affordable mobility solutions.
In other recent news, Stellantis NV presented mixed second-quarter sales results, with certain vehicle models showing growth despite an overall 21% year-over-year decline in sales. The company's June sales data showed a decrease, with 121,000 units sold, marking a 17% drop compared to last year. However, the Jeep Wagoneer, Grand Wagoneer, Wrangler, Grand Cherokee, and Compass models reported significant sales increases.
Stellantis has been given a Neutral rating by a leading financial institution and a Market Perform rating by Bernstein SocGen Group. HSBC revised its price target for Stellantis, reflecting adjusted operating income forecasts, while RBC Capital maintained its Outperform rating on the company.
Further developments include the Biden administration's new fuel economy rules for trucks and SUVs, which are expected to benefit Stellantis. The company also announced a reshuffle of its executive team as part of its "Dare Forward 2030" strategy, focusing on electrification and hybrid technologies. Lastly, Representative Roger Williams from Texas's 25th congressional district has been active in the stock market, including purchases in Stellantis.
InvestingPro Insights
As Stellantis N.V. (STLA) forges a path toward sustainable mobility with its latest research collaboration, the company's financial health and market performance offer additional insights. According to InvestingPro data, Stellantis boasts a robust market capitalization of $75.03 billion USD, underpinned by a highly attractive P/E ratio of 3.06, which further adjusts to 3.5 when considering the last twelve months as of Q4 2023. This is indicative of the company trading at a low earnings multiple, which is a promising sign for value investors.
The company's commitment to R&D in EV battery technology is also mirrored by its financial prudence, as evidenced by an InvestingPro Tip that highlights Stellantis' stronger cash position relative to its debt. This could provide the financial flexibility required for sustained investment in innovation. Additionally, with a dividend yield of 6.27% as of mid-2024, Stellantis not only rewards its shareholders but also demonstrates confidence in its cash flow stability, which is crucial for funding ongoing research endeavors.
InvestingPro further notes that Stellantis is trading at a low revenue valuation multiple, which, when paired with its significant earnings growth, suggests that the company's stock may be undervalued. For investors intrigued by Stellantis' strategic direction and financial metrics, InvestingPro offers additional insights; there are 10 more InvestingPro Tips available, which can be accessed by visiting InvestingPro. To take advantage of these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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