Stellantis and China’s Contemporary Amperex Technology (CATL) have announced a groundbreaking partnership to invest up to €4.1bn ($4.3bn) in a joint venture to establish a lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.
The state-of-the-art facility, set to be fully carbon neutral, will be developed in multiple phases, with investment milestones corresponding to the project’s progress. This 50-50 joint venture between the two companies aims to commence production by the end of 2026.
With a potential capacity of up to 50GWh, subject to the growth of the European electric vehicle (EV) market and ongoing support from Spanish and European Union authorities, the plant is poised to become a key player in Europe’s battery supply chain.
This collaboration follows a preliminary memorandum of understanding (MOU) signed in November 2023, which outlined plans for the local supply of LFP battery cells and modules to support Stellantis’ EV production in Europe. The partnership also focuses on advancing Stellantis’ battery electric vehicle (BEV) technology and enhancing the battery supply chain in Europe.
Stellantis chairman John Elkann expressed the company’s commitment to a decarbonized future, leveraging advanced battery technologies to deliver competitive EV products to customers. He emphasized the importance of this joint venture with CATL in bringing innovative battery production to a manufacturing site that champions clean and renewable energy solutions.
CATL chairman and CEO Robin Zeng highlighted the joint venture’s potential to elevate the collaboration with Stellantis to new heights. He underscored CATL’s goal of making zero-carbon technology accessible globally and expressed confidence in the success of the partnership through the synergy of cutting-edge battery technology and operational expertise.
The establishment of this advanced battery plant in Spain signifies a significant step towards sustainable mobility and the electrification of the automotive industry. The joint venture between Stellantis and CATL is poised to drive innovation, accelerate EV adoption, and contribute to the evolution of the European battery supply chain.
