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Stellantis Blasts EU Climate Plan as Too Modest for Rapid EV Transition

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  Published in Automotive and Transportation on Tuesday, December 16th 2025 at 18:27 GMT by reuters.com

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Stellantis Says EU Proposals Fall Short of the Auto Industry’s Energy‑Transition Needs

In a blistering critique released on 16 December 2025, Stellantis, the world’s largest carmaker by volume, slammed the European Union’s latest climate‑and‑energy proposals as “too modest” and “misaligned” with the automotive sector’s urgent need for a rapid transition to electrified mobility. The automaker, which has already pledged to electrify more than 70 % of its global sales by 2030, argued that the EU’s policy package—largely drawn from the “Fit for 55” climate plan and the European Green Deal—fails to provide the financial, regulatory, and infrastructural support necessary to keep the continent on track to meet its 2030 and 2050 targets.

What the EU Proposals Entail

The European Commission’s “Fit for 55” package, announced earlier this year, sets a 55 % reduction in greenhouse‑gas (GHG) emissions by 2030 relative to 1990 levels. Among its measures are a revised Emissions Trading System (ETS), a Carbon Border Adjustment Mechanism (CBAM), a new Energy Efficiency Directive, and a proposal for a “green” subsidy framework for electric vehicles (EVs) that would allow EU member states to offer tax incentives and rebates up to €6,000 per vehicle.

A key pillar of the package is the “European Battery Alliance” (EBA), intended to create a robust, circular battery supply chain through public‑private partnership, EU‑funded research and development, and a framework for recycling and second‑life use. The EU also plans to invest €20 billion in a “Climate‑Innovation Fund” that would co‑fund battery production, charging infrastructure, and low‑carbon hydrogen projects.

Stellantis’ own policy brief, published in tandem with its criticism, cited the EBA’s “ambitious goals” but pointed out that the EU had not yet defined concrete timelines or allocation of the €20 billion, leaving automakers with an incomplete roadmap.

Stellantis’ Main Grievances

1. Inadequate Funding and Clarity for EV Infrastructure
   Stellantis highlighted that the EU’s proposal for charging infrastructure grants is fragmented, offering only €3 billion for the “Digital and Electric Mobility” programme, which is insufficient to cover the €80 billion that industry analysts estimate is required to build a continent‑wide fast‑charging network by 2030. The automaker called on the Commission to commit a dedicated €25 billion line to ensure equitable access for both passenger cars and commercial vehicles.

2. Battery Supply‑Chain and Circular Economy Shortfalls
   While the EU’s “Battery Union” aims to establish a circular economy, Stellantis said the proposed framework’s lack of binding targets for battery recycling and second‑life use is a significant gap. The company stressed that, without clear regulations, it will struggle to secure enough high‑purity lithium and cobalt for its planned 120 billion‑unit production of EV batteries over the next decade.

3. Carbon Border Adjustment Mechanism (CBAM) Ambiguities
   The automaker expressed concern that the CBAM, currently still in draft form, would impose additional costs on imported steel and aluminum, which are critical components of EV bodies. Stellantis warned that without a clear, phased implementation plan, manufacturers risk losing competitiveness in global markets where such measures are not yet in place.

4. Regulatory Uncertainty and Market‑Driven Incentives
   Stellantis argued that the EU’s approach still leaves too much discretion to individual member states. The company’s CEO, Carlos Tavares, wrote in a statement: “A patchwork of national policies risks creating an uneven playing field, hindering the scale‑up of electric mobility that is essential to meet Europe’s climate commitments.”

Industry Context

Stellantis is not alone in voicing concerns. Ford, Volkswagen, and Renault‑Nissan have also submitted commentary to Brussels, calling for stronger EU‑wide subsidies and a more coordinated battery‑production strategy. According to the European Automobile Manufacturers Association (ACEA), the auto sector could miss the 2030 climate targets by as much as 10 % if EU policy is not tightened, especially in light of the rapid rise in global EV demand.

At the same time, EU officials are cautiously optimistic. The European Commissioner for Climate Action, Jérôme Bourdon, responded to Stellantis’ letter in a brief statement that said: “The Commission recognises the challenges outlined by our partners in the automotive industry. We remain committed to revisiting the allocation of the Climate‑Innovation Fund and to clarifying the CBAM timelines in upcoming consultations.”

What This Means for Stellantis

Stellantis’ push for more decisive EU action is part of its broader strategy to cement its position as a leader in electrified mobility. The company is investing €15 billion in battery cell production facilities across Europe, with a goal of producing 25 GWh of cells annually by 2030. The automaker also announced plans to partner with battery recycling firms, aiming to recycle at least 60 % of its battery materials by 2028.

If the EU falls short in delivering the support Stellantis demands, the automaker warns that it may need to look beyond European borders for investment, potentially slowing down its plans to keep production and supply chains entirely within the EU. “Our vision is a Europe that is technologically advanced and environmentally responsible,” Tavares said. “We can’t do that without a supportive regulatory and financial framework.”

Looking Ahead

The EU’s next steps are critical. While the Commission is slated to release an updated “Fit for 55” roadmap in the first quarter of 2026, Stellantis and its peers are calling for a new round of consultations that will involve a broader range of stakeholders, including battery manufacturers, charging infrastructure providers, and civil‑society climate groups. The outcome of these discussions will shape not only Europe’s GHG emissions trajectory but also its role as a global benchmark for sustainable automotive production.

In summary, Stellantis’ critique underscores a growing tension between ambitious climate goals and the practical realities of industrial transition. The automaker’s insistence on clearer timelines, robust funding, and cohesive regulation reflects a sector that is both a major contributor to emissions and a key driver of the very technologies that will mitigate them. As the EU navigates its next policy cycle, the automotive industry’s demands for decisive, coherent action will likely remain at the forefront of the climate‑transition debate.