MILAN -- Stellantis is making progress on finalizing a deal to build a large battery plant in Italy to feed increasing production of electrified vehicles in the country, two sources familiar with the matter said on Wednesday.
Italy is one of Stellantis' main production hubs in Europe, with the automaker aiming to offer electrified versions -- either full electric or hybrid -- of almost all its European lineup by 2025.
Formed in January by the merger of Fiat Chrysler and PSA, Stellantis currently has two battery plant projects in Europe, one in France and one in Germany, both in a joint venture with a subsidiary of TotalEnergies.
It has said it would take a decision on additional gigafactories in Europe and in the United States this year.
"It will still take time to finalize a deal, but what is good is that things have started to move concretely," a senior government source said.
The source confirmed that the Italian battery plant would be built under a public-private partnership, with Stellantis in a leading role, spurring a total investment of more than one billion euros ($1.2 billion)
Stellantis declined to comment.
CEO Carlos Tavares said last week talks were ongoing with the Italian government but that a final decision had not been taken yet.
A second source close to the matter said Stellantis was leaning towards building its third European battery plant in Italy and that Chairman John Elkann was in Rome on Tuesday for talks with several government officials.
On Thursday, Stellantis will hold its electrification day to unveil details of its strategy towards cleaner mobility, though an announcement on its new European gigafactory is not expected.