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Stellantis and CATL plan €4.1B battery plant in Spain

Web TeamBy Web TeamDecember 16, 20242 Mins Read
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Standing: John Elkann, Stellantis Chairman and Robin Zeng, Chairman & CEO of CATL. Seated: Maxime Picat, Stellantis Chief Purchasing and Supplier Quality Officer and Libin Tan, Chief Customer Officer, President of Sales & Marketing of CATL.

Stellantis and CATL have announced plans to jointly invest up to €4.1 billion in a new battery manufacturing facility in Zaragoza, Spain, marking a significant expansion of Europe’s EV supply chain.

The 50-50 joint venture will construct a lithium iron phosphate (LFP) battery plant designed to be carbon neutral, with production scheduled to begin in late 2026. The facility could reach a capacity of 50 gigawatt-hours, contingent upon European EV market growth and continued regulatory support from Spanish and EU authorities.

The plant will focus on producing LFP batteries for Stellantis’ B and C segment vehicles, including passenger cars, crossovers, and SUVs with mid-range capabilities. This follows a non-binding memorandum of understanding signed between the companies in November 2023, which established their collaboration on battery supply and technology development.

“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. “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.”

CATL Chairman and CEO Robin Zeng emphasized the strategic importance of the partnership: “CATL’s goal is to make zero-carbon technology accessible across the globe, and we look forward to cooperating with our partners globally through more innovative cooperation models.”

The Spanish facility will complement CATL’s existing European operations, which include active plants in Germany and Hungary. For Stellantis, the venture advances its dual-chemistry strategy utilizing both LFP and nickel manganese cobalt batteries, supporting the company’s goal of achieving carbon net zero status by 2038.

The transaction requires regulatory approval and is expected to close in 2025.

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