Stellantis and CATL to build LFP battery plant in Spain
For €4.1 billion
Stellantis and Contemporary Amperex Technology Co. Ltd. (CATL) have announced a landmark agreement to invest up to €4.1 billion in a joint venture to build a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.
The cutting-edge facility, set to commence production by the end of 2026, will cater to the growing demand for affordable, durable, high-performance electric vehicle batteries (EVs).
The plant, which will be fully carbon-neutral, will play a pivotal role in Stellantis’ ambitious “Dare Forward 2030” strategy, which aims to enhance the availability of more affordable battery electric vehicles (BEVs) across Europe.
The joint venture, which will be split equally between Stellantis and CATL, is expected to produce up to 50 GWh of LFP batteries, subject to market conditions and ongoing support from the Spanish government and the European Union.
Stellantis is leveraging a dual-chemistry approach, incorporating lithium-ion nickel manganese cobalt (NMC) and LFP batteries. This strategy ensures a broader range of affordable, high-quality EVs, including passenger cars, crossovers, and SUVs in the B and C segments, with intermediate driving ranges.
The Zaragoza plant will significantly enhance Stellantis’ LFP battery offerings in Europe, contributing to its goal of carbon neutrality by 2038.
In November 2023, Stellantis and CATL signed a non-binding memorandum of understanding (MOU), formalising their collaboration for the local supply of LFP battery cells and modules for Stellantis’ electric vehicles in Europe. This collaboration aims to create a comprehensive technology roadmap to support advanced BEV development and strengthen the European battery value chain.
Stellantis Chairman John Elkann expressed his commitment to a decarbonised future: “This important joint venture with our partner CATL will bring innovative battery production to a site already renowned for its clean and renewable energy leadership.” He also thanked the Spanish authorities for their continued support in making this partnership a reality.
Robin Zeng, Chairman and CEO of CATL, highlighted the collaboration’s significance, saying, “The joint venture has taken our cooperation with Stellantis to new heights. We are committed to making zero-carbon technology accessible worldwide.” CATL’s advanced manufacturing technology and Stellantis’ long-established presence in Zaragoza are expected to deliver significant success in the EV industry and global climate efforts.
CATL has already established operational plants in Germany and Hungary, and the Zaragoza facility will further enhance its ability to meet its customers’ evolving needs, reinforcing its commitment to supporting Europe’s energy transition and e-mobility ambitions.
This investment aligns with Stellantis’ ongoing efforts to explore innovative battery cell and pack technologies. The company aims to transition towards carbon neutrality by 2038. Pending regulatory approvals, the joint venture is expected to close in 2025.
As part of this strategic shift, Stellantis and CATL’s collaboration is expected to help drive the sustainable future of the automotive and energy sectors, ensuring the availability of cutting-edge, environmentally friendly technologies for consumers worldwide.
Hero image: (Standing) John Elkann, Stellantis Chairman and Robin Zeng, Chairman & CEO of CATL. (Seated) Maxime Picat, Stellantis Chief Purchasing and Supplier Quality Officer; Libin Tan, Chief Customer Officer; President of Sales & Marketing of CATL.
Last Updated on 5 hours by Arnold Pinto
