The deal to bolster sales as the EU pushes carmakers to produce more clean-energy vehicles will see Dongfeng's Voyah EVs built at Stellantis's plant in Rennes, western France, for the European market, the companies said in a statement.
It is the latest move by Stellantis chief Antonio Filosa to revive sales and profits at the world's fourth-largest automaker, in particular in Europe, where the shift away from combustion engines has sputtered.
The company announced earlier this month a plan to build Jeep and Peugeot models for the Chinese market, and increase cooperation on technology research and development.
Stellantis will lead the Europe joint venture with a 51 percent stake, while Dongfeng will have 49 percent. Financial details were not disclosed.
"With this new chapter in our collaboration, we will give our customers an even greater choice of competitive products and pricing, leveraging the best of Stellantis's global footprint alongside Dongfeng's access to China's advanced new energy vehicles ecosystem," Filosa said in a statement.
Dongfeng's chairman Qing Yang said in the statement: "Through coordination in technology, branding, and global markets, it will unlock greater value from the joint venture, accelerate Dongfeng's global expansion, [and] support Stellantis's global strategic shift and China presence."
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