MILAN -- Stellantis is discussing conditions with Rome to build a gigafactory in Italy as part of the automaker's plan to support its expansion into electric mobility, a source close to the matter said.
"Discussions are just at the stage of an exchange on the principle of creating a gigafactory in order to cover (Stellantis') future needs. These conditions will have to be studied with Italian authorities," the source told Reuters on Tuesday.
Nothing had yet been decided, the source said.
Stellantis declined to comment.
Stellantis Chairman John Elkann and CEO Carlos Tavares met with Giancarlo Giorgetti, Italy's economic development minister, last week, Reuters reported.
Giorgetti sought assurances from Stellantis that Italy will remain one of the main countries where the company manufactures vehicles and inquired about plans for investment in battery making at Mirafiori, Fiat’s main industrial district in Turin, the people said.
Stellantis , which was formed in January by the merger of Fiat Chrysler Automobiles and PSA Group, has a joint venture with energy giant Total, called Automotive Cells Company, to build two battery cell factories in Douvrin, France and Kaiserslautern, Germany.
The two sites represent a total investment of 5 billion euros and should allow production of batteries for 1 million cars per year on the basis of a cumulative 48 GWh capacity.
Tavares said on April 15 that Stellantis would decide by year end where to locate a third factory as part of an electrification push.
As part of a 205-billion-euro ($251 billion) recovery plan, Italy will spend almost 24-billion euros on the transition to cleaner energy and sustainable mobility. As part of this, Rome plans to invest 1 billion euros to enhance its battery, and solar and wind power industries.