Stellantis and CATL to Set Up Lithium Battery Plant in Spain
Stellantis, the Amsterdam-based leading automakers aiming to provide clean, safe and affordable freedom of mobility to all, along with Contemporary Amperex Technology Co., Limited (CATL) a global leader in new energy technology innovation, has signed an agreement to invest up to $4.31 billion to build a large-scale European lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.
Designed to be completely carbon neutral, the battery plant will be implemented in several phases and investment plans. The transaction is expected to close in the course of 2025 and is subject to customary regulatory conditions, Stellantis said in a statement.
Targeted to start production by end of 2026 at Stellantis’ Zaragoza, Spain site, the facility could reach up to 50 GWh capacity, subject to the evolution of the electrical market in Europe and continued support from authorities in Spain and the European Union.
The 50-50 joint venture between CATL and Stellantis will boost Stellantis’ best-in-class LFP offer in Europe enabling the automaker to offer more high-quality, durable and affordable battery-electric passenger cars, crossovers and SUVs in the B and C segments with intermediate ranges.
In November 2023, Stellantis and CATL signed a non-binding MOU for the local supply of LFP battery cells and modules for electric vehicle production in Europe and established a long-term collaboration on two strategic fronts: creating a bold technology roadmap to support Stellantis’ advanced battery electric vehicles (BEV) and identifying opportunities to further strengthen the battery value chain.
CATL will bring state-of-the-art battery manufacturing technology to Europe through its two plants in Germany and Hungary, which are already operational. The Spanish facility will enhance its capabilities to support customers’ climate goals, further underscoring its commitment to advancing e-mobility and energy transition efforts in Europe and the global market.
On its part, Stellantis is employing a dual-chemistry approach – lithium-ion nickel manganese cobalt (NMC) and LFP – to serve all customers and exploring innovative battery cell and pack technologies. Stellantis is on track to becoming a carbon net zero corporation by 2038, all scopes included, with single-digit percentage compensation of remaining emissions.
Bringing Competitive EV Products
Stellantis Chairman John Elkann said that his company is committed to a decarbonised future, embracing all available advanced battery technologies to bring competitive electric vehicle products to their customers.
“This important joint venture with 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,” he said.
CATL’s Chairman and CEO Robin Zeng said that the joint venture has taken their cooperation to new heights, and the 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.
He also said that 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.
