MILAN, Dec 5 (Reuters) - Stellantis ( STLA ) has

signed an agreement with U.S.-based Zeta Energy to develop cheap

lithium-sulfur batteries for electric vehicles, with an aim to

use them by 2030, the two companies said on Thursday.

With battery costs significantly impacting EV prices,

automakers are seeking to develop alternative technologies to

the vehicles more affordable.

Unlike traditional lithium-ion batteries, lithium-sulfur

batteries do not use expensive materials such as nickel or

cobalt, resulting in cheaper production costs, although they are

shorter lasting.

"Lithium-sulfur batteries are expected to cost less than

half the price per kWh (kilowatt hour) of current lithium-ion

batteries," Stellantis ( STLA ), the world's fourth largest carmaker, and

battery maker Zeta said in a joint statement.

The agreement is aimed at developing lighter batteries but

with an energy potential comparable to that of current

lithium-ion technology, they said.

"This means potentially a significantly lighter battery pack

with the same usable energy as contemporary lithium-ion

batteries, enabling greater range, improved handling and

enhanced performance".

Such technology might increase battery fast-charging speed

by up to 50%, the companies said. The agreement includes

pre-production development and plans for future production by

2030.

"Groundbreaking battery technologies like lithium-sulfur can

support Stellantis' ( STLA ) commitment to carbon neutrality by 2038

while ensuring our customers enjoy optimal range, performance

and affordability," Stellantis ( STLA ) tech chief Ned Curic said.

The batteries are intended to be manufacturable within

existing gigafactory technology, relying on a short and entirely

domestic supply chain in Europe or North America, the two

companies said.

Stellantis ( STLA ) is also a backer of Silicon Valley startup Lyten,

which in October announced a plan to invest over $1 billion to

build the world's first gigafactory for lithium-sulfur batteries

in Nevada.