Stellantis and CATL have agreed to invest up to €4.1 billion to set up a joint venture for a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The facility is designed to be completely carbon-neutral and will be developed in several phases.
Stellantis plans to start production at the Zaragoza site by the end of 2026. Depending on the growth of Europe’s electric vehicle market and continued support from Spanish and EU authorities, the plant’s capacity could reach 50 GW.
This 50-50 joint venture will strengthen Stellantis’ LFP battery offering in Europe, enabling the automaker to deliver more high-quality, durable and cost-effective electric passenger cars, crossovers and SUVs in the B and C segments with intermediate ranges.
In November 2023, Stellantis and CATL signed a non-binding MoU for the local supply of LFP battery cells and modules for electric vehicle production in Europe and established long-term cooperation on two strategic fronts: creating a bold technology roadmap to support Stellantis’ advanced battery electric vehicles (BEVs) and further strengthening To identify opportunities. Battery price series.
“Stelantis is committed to a decarbonized future, adopting all available advanced battery technologies to bring competitive electric vehicle products to our customers,” said John Elkann, President of Stellantis. “This important joint venture with our partner CATL will bring innovative battery production to a manufacturing site that is already a leader in clean and renewable energy, helping to drive a 360-degree sustainability approach. I would like to thank all the stakeholders involved in making today’s announcement a reality, including the Spanish authorities for their continued support.
“The joint venture takes our collaboration with Stellantis to new heights, and I believe that our state-of-the-art battery technology and excellent operational know-how combined with Stellantis’ decades-long experience in running a business locally in Zaragoza will ,” said Robin Zeng, President and CEO of CATL. “CATL aims to make zero-carbon technology accessible worldwide, and we will do so through more innovative collaboration models. “But look forward to collaborating with our partners.”
CATL is bringing cutting-edge battery manufacturing technology to Europe through its two plants in Germany and Hungary, which are already operational. The Spanish facility will enhance its capabilities to support customers’ climate goals, underscoring its commitment to advance e-mobility and energy transition efforts in Europe and the global market.
Stellantis is employing a dual chemistry approach – lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) to serve all customers and discover innovative battery cell and pack technologies. Stellantis is on track to become a carbon net zero corporation by 2038, covering all sectors, with single-digit percentage compensation of remaining emissions.
The transaction is expected to close during 2025 and is subject to customary regulatory conditions.
