Italy’s govt is in talks with Stellantis, the carmaker formed by the merger of Fiat Chrysler Vehicles and PSA Group, about investing in electrical-vehicle battery producing in the state, according to folks acquainted with the make a difference.

A assembly in Rome this week in between Stellantis Chairman John Elkann, CEO Carlos Tavares and Giancarlo Giorgetti, Italy’s economic enhancement minister, centered all-around the upcoming of electrical mobility in the state, explained the folks, who requested not to be named due to the fact the accumulating was personal.

Giorgetti sought assurances from Stellantis that Italy will remain a single of the main nations around the world where the business manufactures motor vehicles and inquired about plans for investment in battery making at Mirafiori, Fiat’s main industrial district in Turin, the folks explained.

Spokesmen for Stellantis and the minister declined to comment. The conversations are at an early stage, no closing selection has been produced and the business could make your mind up to commit in battery production somewhere else.

Difficult placement

Tavares, sixty two, is in a difficult placement as the head of what is now the second-premier carmaker in Europe, behind only Volkswagen Group.

France just lately pressured the previous head of Peugeot-maker PSA to manage engine output that the business was heading to move to Hungary. Stellantis executives also have been negotiating with the British isles govt for months for assist to retool a auto manufacturing facility in England in light of the country’s pending combustion-auto ban.

PSA was even further alongside in investing in EVs just before its merger with Fiat, possessing produced plans for a about 5 billion-euro project with oil big Whole that is backed by the French govt. PSA’s more robust gross sales of plug-in hybrids and battery-run vehicles enabled Stellantis to exit an emissions-credit score agreement that Fiat had set up with Tesla in 2019.

Italian existence

Stellantis employs extra than 50,000 personnel across a number of-dozen producing services Italy. Previous calendar year, the govt led by Premier Giuseppe Conte permitted a six.3 billion-euro ($ billion) credit score facility for Fiat, the premier govt-backed financing organized for a carmaker in Europe for the duration of the coronavirus pandemic.

As section of its environmentally friendly changeover drive, the new govt led by Mario Draghi is organizing to commit about 25 billion euros of European Union restoration funds in new infrastructure and top rated-up that quantity with domestic funds for an all round investment of extra than 31 billion euros.

The plan phone calls for renewing the public-transportation fleet with zero- and small-emission motor vehicles and allocating about eight.5 billion euros to sustainable mobility, such as 21,000 public rapidly-charging stations.

Accelerated shift

Tavares has vowed to velocity up Stellantis’s electrical shift and forecasts that vehicles with a battery will account for extra than a third of its European gross sales by mid-decade. The maker of Fiats, Peugeots and Jeeps expects to triple gross sales of plug-in hybrid and absolutely electrical motor vehicles to extra than 400,000 units this calendar year.

The CEO explained very last thirty day period Stellantis will intention to protected 250 gigawatt-hrs of battery capacity by the close of the decade. Choices to develop added battery factories in Europe and North The united states could be produced this calendar year, and the business has scheduled a briefing for buyers on its EV system for July eight.

Fiat has been making vehicles at its legendary Mirafiori plant because 1939. Mirafiori presently has been a hub for the company’s EV production, starting up with the electrical model of the Fiat 500. Stellantis plans to start creating electrical variations of Maserati’s Gran Turismo and Gran Cabrio products in Turin in mid-2022.