Stellantis and CATL have agreed to invest up to 4.1 billion euros in a joint venture to open a large lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The zero-climate-impact battery plant will be developed in multiple phases and investment plans.
Stellantis and CATL strike a deal for a joint venture that will build lithium iron phosphate (LFP) batteries in Spain
The facility is expected to begin operations at Stellantis’ Zaragoza site in Spain by the end of 2026. It will reach a capacity of up to 50 GWh, subject to the development of the electric vehicle market in Europe and continued support from Spanish and European Union authorities. The 50:50 joint venture between CATL and Stellantis will strengthen Stellantis’ LFP offering in Europe and enable the automaker to offer superior quality, more durable, and more affordable battery electric cars and crossovers in the B and C mid-range segments.
In November 2023, Stellantis and CATL had already signed a non-binding letter of intent for the local supply of LFP battery cells and modules for electric vehicle production in Europe and had initiated a long-term collaboration on two strategic levels: creating an ambitious technology roadmap to support Stellantis’ advanced battery electric vehicles (BEVs) and identifying opportunities to further strengthen the battery value chain.
“Stellantis is committed to a decarbonized future and leverages all available advanced battery technologies to offer our customers competitive electric vehicle products,” said John Elkann, Chairman of Stellantis. “This important joint venture with our partner CATL brings innovative battery production to a manufacturing site that is already a leader in clean and renewable energy, contributing to our 360-degree sustainability approach. I would like to thank everyone who helped make today’s announcement a reality, including Spanish authorities for their continued support.”
“The joint venture has taken our collaboration with Stellantis to new levels. I am confident that our cutting-edge battery technology and exceptional operational expertise, combined with Stellantis’ decades of experience in managing local operations in Zaragoza, will create a great success story in the industry,” said Robin Zeng, Chairman and CEO of CATL. “CATL’s goal is to make CO2-free technologies accessible worldwide. We look forward to working with our partners worldwide through more innovative collaboration models.”
CATL brings cutting-edge battery production technology to Europe with its two facilities already operating in Germany and Hungary. The Spanish facility will enhance the company’s capabilities to support customers’ climate goals and further underscore its commitment to promoting electric mobility and propulsion transition in Europe and worldwide.
Stellantis uses a dual chemical approach – nickel manganese cobalt lithium-ion (NMC) and lithium iron phosphate (LFP) – to serve all customers and explore innovative cell and battery pack technologies. Stellantis is on track to become a net-zero carbon emissions company by 2038. In recent days, the automotive group has also signed an agreement with Zeta Energy in the United States for lighter and more economical batteries.