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Chrysler parent company Stellantis (STLA) said it plans to spend 1.5 billion euros ($1.6 billion) to acquire a roughly 20% stake in Chinese electric vehicle startup Leapmotor, in a move that could help the Big Three automaker expand its presence in China.

The costly United Auto Workers (UAW) strike against Ford (F), General Motors (GM), and Stellantis (STLA), could complicate the Big Three automakers' already difficult transition to electric vehicles (EVs).

Guessing which Chinese EV startups will come out on top seems a high-risk game, and it is a measure of the challenge facing global automakers that Stellantis feels the need to play it.

Ford autoworkers were set to head back to work after the United Auto Workers (UAW) union reached a tentative labor deal with the company late Wednesday.

Stellantis is looking to boost its presence in China where it is a small player, while Leapmotor has ambitions to expand aggressively into Europe.

Stellantis NV (NYSE:STLA, EPA:STLA), the European automotive giant behind Fiat and Citroën, is investing €1.5 billion to acquire a 20% stake in Chinese electric vehicle (EV) start-up Leapmotor. The move aims to strengthen Stellantis's foothold in China's burgeoning EV market.

China's Zhejiang Leapmotor Technology on Thursday said it will issue shares worth HK$8.51 billion ($1.09 billion) to Stellantis NV.

After a difficult month, Stellantis (NYSE: STLA ) just offered investors a reason to be optimistic. The prominent automaker has been struggling for weeks as the United Auto Workers (UAW) strike drags on.

Canadian labor union Unifor said on Wednesday that it is prioritizing discussions around the EV transition for the Brampton assembly plant in its labor contract talks with Chrysler parent Stellantis NV.

Stellantis, Europe's second biggest car manufacturer, is closing in on an agreement to buy a 20% stake in Chinese EV specialist Zhejiang Leapmotor Technologies, in a deal estimated to be worth upwards of $1 billion.