On December 10, Stellantis and CATL announced plans to invest up to €4.1 billion to establish a large-scale lithium iron phosphate (LFP) battery plant at the Stellantis site in Zaragoza, Spain. The joint venture, to be structured as a 50-50 partnership, aims to advance battery production capacity in Europe, with operations expected to begin by the end of 2026.
The facility, which will be built in phases, is designed to reach a production capacity of up to 50 GWh, depending on market evolution and ongoing support from Spanish and European authorities. The plant will also focus on carbon neutrality, aligning with both companies’ climate goals and commitments to sustainable manufacturing.
Supporting Affordable EV Production and Sustainability
The joint venture supports Stellantis’ Dare Forward 2030 strategy, which focuses on achieving affordability, performance, and sustainability in electric vehicle (EV) production. By leveraging CATL’s advanced battery technology and Stellantis’ manufacturing expertise, the plant will enable the production of durable and cost-effective LFP batteries. These batteries will be used in Stellantis’ B- and C-segment battery-electric vehicles, such as passenger cars, SUVs, and crossovers, offering intermediate ranges to meet customer demand 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. “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, helping drive a 360-degree sustainable approach. I want to thank all stakeholders involved in making today’s announcement a reality, including the Spanish authorities for their continued support.”
Advancing European Battery Production
The project builds on a non-binding Memorandum of Understanding signed between Stellantis and CATL in November 2023, which outlined plans to collaborate on battery cell and module production for the European market. The partnership also focuses on creating a technology roadmap for Stellantis’ battery-electric vehicles and strengthening the overall battery value chain in the region.
“The joint venture has taken our cooperation with Stellantis to new heights, and I believe our cutting-edge battery technology and outstanding operation knowhow combined with Stellantis’ 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’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.”
CATL currently operates two battery manufacturing plants in Germany and Hungary. The new Spanish facility will further strengthen its European presence, supporting e-mobility and energy transition efforts both regionally and globally.
Stellantis’ Dual-Chemistry Strategy
Stellantis is implementing a dual-chemistry battery strategy using both lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) chemistries. This approach allows Stellantis to provide affordable solutions for a variety of customers while exploring innovative battery technologies to enhance performance and efficiency.
Stellantis remains on track to become a carbon net-zero corporation by 2038, covering all scopes of emissions, with single-digit percentage offsets for remaining emissions.
Source/Photo Credit: Stellantis
About Stellantis:
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers, known for its diverse portfolio of iconic brands, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move, and Leasys. The company’s Dare Forward 2030 strategic plan outlines its goal to achieve carbon net-zero emissions by 2038, with minimal offsetting, while delivering value for all stakeholders. For more information, visit stellantis.com.
About CATL:
Contemporary Amperex Technology Co., Limited (CATL) is a global leader in new energy technology, providing solutions and services for electric vehicles (EVs) and energy storage applications. Publicly listed on the Shenzhen Stock Exchange (300750), CATL has ranked first in global EV battery consumption for seven consecutive years as of 2023, and leads in global energy storage battery shipments. The company has set strategic goals to achieve carbon neutrality in its core operations by 2025 and across its battery supply chain by 2035. For more information, visit catl.com.
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