Stellantis is investing in a French sodium-ion battery manufacturer for the production of electric vehicles.

Stellantis announced on Friday that it is investing in a French start-up called Tiamat, specialized in sodium-ion batteries, in order to diversify its portfolio and mass-produce electric vehicles while reducing its exposure to rare resources.

The exact amount of the investment, which is part of Tiamat’s first funding round of 150 million euros, has not been disclosed. The funds will be used in part to build a battery factory in northern France, said Hervé Beuffe, CEO of Tiamat.

This facility, the fifth “gigafactory” for the electric vehicle supply chain in the region, is expected to have an initial capacity of 0.7 gigawatt-hours by 2026, which could be increased to 5 GWh by 2029, he added.

Founded in 2017 by CNRS, Tiamat claims to be able to produce competitive batteries without lithium, a highly sought-after metal due to the global electrification boom, which it replaces with sodium, a much more abundant resource. Its batteries, which are cheaper but also have a shorter range, will be suitable for small vehicles. The reduced range can be compensated by faster charging capacity, according to Tiamat.

“Exploring new options for more sustainable and affordable batteries using widely available raw materials is a key element of our ambitions under the Dare Forward 2030 strategic plan, which will enable us to achieve a carbon-neutral balance by 2038,” said Ned Curic, Head of Engineering and Technology at Stellantis.

With information from Reuters