BRIEF: Leapmotor, Stellantis eye shared production lines to expand in Europe

EV maker Zhejiang Leapmotor Technology Co. Ltd. (9863.HK) and global automaker Stellantis (STLA.US) are reportedly planning to deepen their partnership, expanding beyond sales to include joint procurement, shared production lines and better utilization of European manufacturing capacity, as the two companies seek to accelerate their expansion in the European EV market.

Under the latest cooperation plan announced last Friday, the two sides are evaluating adding a new production line at Stellantis’ Figueruelas plant in Spain to manufacture a new Opel-branded EV, according to Caixin. Leapmotor is also planning to begin producing one of its existing models at the same factory as early as this year. In addition, the companies are studying a plan to transfer Stellantis’ Villaverde plant in Madrid to Leapmotor International to operate and introduce its new vehicle models.

Stellantis formed its partnership with in Leapmotor in 2023 and currently holds about 18.99% of the Chinese EV maker. The two companies also established Leapmotor International, a joint venture responsible for overseas sales and production. Leapmotor has leveraged Stellantis’ existing distribution network to rapidly expanded in Europe, with cumulative deliveries in the region exceeding 40,000 vehicles by the end of 2025.

Leapmotor’s monthly registrations for pure battery EV orders in Europe reached nearly 8,000 units in February this year, surging 789% year-on-year and ranking ninth in the European EV market.

As EV demand growth in Europe and the U.S. slows, Stellantis has begun scaling back its aggressive electrification strategy after swinging to a net loss in 2025. The partnership could help Stellantis lower EV development costs, while allowing Leapmotor to expand localized production in Europe and reduce tariff and logistics costs.

Leapmotor’s stock opened flat on Tuesday and traded at HK$47.96 by the midday break, down 2.91%. The stock has risen about 4.7% over the past five trading days.

By Lee Shih Ta

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