China gives green light to Stellantis-Leapmotor joint venture - sources

Last October, Stellantis said it would buy a 21 percent stake in Leapmotor--in a $1.6 billion deal that would allow it to set its sights back on China, the world's largest automotive market by sales--and announced the joint venture.

PARIS (Reuters) - The proposed joint venture, which would allow Stellantis, to build and sell Leapmotor's electric vehicles (Ev) outside China, has been approved by China's government agency Ndrc.

According to two sources, the National Development and Reform Commission (Ndrc) has approved the joint venture, one of the sources said, adding that the deal is still awaiting regulatory approval in other markets.

Under the agreement, Stellantis would have exclusive rights to build, export and sell Leapmotor products outside China, a first for a Western automaker.

Stellantis will hold 51 percent of the joint venture.

Last month, Stellantis CEO Carlos Tavares said the automaker could build electric vehicles based on Leapmotor technology in Europe, North America or markets where it needs competitively priced models to compete with Chinese electric vehicle manufacturers.

Stellantis did not comment and Ndrc representatives could not be reached for comment.

(Translated by Laura Contemori, editing Stefano Bernabei)