Stellantis and CATL invest 4.1 billion in LFP battery plant in Spain
The French automotive group Stellantis and the Chinese battery manufacturer CATL have announced the establishment of a joint venture with an investment of up to 4.1 billion euros and plans to build a large European lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The fully climate-neutral battery factory will be implemented in several phases and investment plans. The facility is scheduled to be operational at the Stellantis site in Zaragoza (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 the ongoing support of the authorities in Spain and the European Union. The 50:50 joint venture aims to strengthen Stellantis' top-class LFP offering in Europe and enable the automaker to offer higher-quality, more durable, and affordable battery-electric cars, crossovers, and SUVs in the B and C segments with medium ranges.
As early as November 2023, the companies had signed a non-binding memorandum of understanding for the local supply of LFP battery cells and modules for the production of electric vehicles in Europe and launched a long-term collaboration on two strategic levels: creating an ambitious technology roadmap to support Stellantis' advanced battery-electric vehicles (BEV) and identifying opportunities to further strengthen the battery value chain.
“Stellantis is utilizing all available advanced battery technologies to offer its customers competitive electric vehicle products,” explained 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, thus contributing to our 360-degree sustainability approach.
CATL CEO and Chairman Robin Zeng expressed confidence that the battery technology and operational know-how combined with Stellantis' decades of experience would become a success story in the industry. CATL, with its two plants in Germany and Hungary, which are already operational, brings state-of-the-art battery manufacturing technology to Europe. The Spanish facility is intended to enhance the company's ability to support customers' climate goals and further underscores the commitment to promoting electromobility and the power transition in Europe and globally. The company employs a dual-chemistry approach—lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP)—to serve all customers and explore innovative battery cell and pack technologies. The company is well on its way to becoming a net zero CO2 emissions company by 2038 (including all scopes with a compensation of remaining emissions in the single-digit percentage range), Stellantis further announced.
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