Stellantis and CATL have announced an agreement to invest up to €4.1bn (US$4.3bn) in a joint venture to establish a large-scale European lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. Designed to be completely carbon neutral, the battery plant will be implemented in several phases and investment plans.
The company aims to start production by end of 2026 at Stellantis’s Zaragoza site. The facility could reach up to 50GWh capacity, “subject to the evolution of the electrical market in Europe and continued support from authorities in Spain and the European Union”, Stellantis said.
The 50-50 joint venture between will boost Stellantis’s LFP offer in Europe, enabling the auto maker to offer more BEVs 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.
“Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers,” said Stellantis chairman John Elkann.
“The joint venture has taken our cooperation with Stellantis to new heights, and I believe our cutting-edge battery technology and outstanding operation know-how combined with Stellantis’s decades-long experience in running business locally in Zaragoza will ensure a major success story in the industry,” said Robin Zeng, chairman and CEO of CATL.
CATL is bringing advanced battery manufacturing technology to Europe, with two plants in Germany and Hungary that are already operational. The Spanish facility will enhance its capabilities to support customers’ climate goals, further underscoring its commitment to e-mobility.
Stellantis is employing a dual-chemistry approach – lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) and exploring innovative battery cell and pack technologies. The company is also on track to becoming a carbon net-zero corporation by 2038.