Stellantis and the Chinese company CATL announced this Tuesday that they have reached an agreement to invest up to €4.1 billion in a joint venture that will build a European factory for lithium iron phosphate (LFP) batteries in Zaragoza, Spain.
The new joint venture, which will be equally owned by both companies, aims to boost Stellantis’ LFP battery supply, allowing the manufacturer to offer more high-quality, durable, and affordable electric passenger cars, crossovers, and SUVs in the B and C segments with intermediate ranges.
The new battery factory, which will be completely carbon neutral, will be implemented in several phases and investment plans, with production expected to start by the end of 2026. The factory could achieve a production capacity of 50 GWh, depending on the evolution of the electric market in Europe and the continued support from Spanish authorities and the European Union.
“Stellantis is committed to a decarbonized future, adopting all available advanced battery technologies to provide competitive electric vehicles to our customers”, stated Stellantis President 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, further driving a 360-degree sustainable approach”, concluded John Elkann.
It is worth noting that the Chinese company CATL is focusing on bringing cutting-edge battery manufacturing technology to Europe through its two factories in Germany and Hungary, which are currently operational. The Spanish unit will enhance its capabilities to support the climate goals of customers, further underscoring its commitment to promoting electric mobility and energy transition efforts in Europe and the global market.
“The joint venture has taken our cooperation with Stellantis to new heights, and I believe that our cutting-edge battery technology and our excellent operational know-how, combined with Stellantis’ decades of experience in managing businesses locally in Zaragoza, will ensure a great success story in the industry”, said Robin Zeng, Chairman and CEO of CATL.
