Stellantis and CATL to build €4.1B battery plant in Spain
Stellantis and CATL say that the companies will invest up to EUR 4.1 billion to form a joint venture to build a large-scale European lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.
Production at the Zaragoza, Spain site is set to begin by late 2026, with a potential capacity of up to 50 GWh, depending on Europe's electricity market and ongoing support from Spanish and EU authorities.
The 50-50 joint venture between the companies will boost Stellantis' LFP battery offerings in Europe, enabling the production of affordable, durable electric cars, crossovers, and SUVs in the B and C segments with mid-range capabilities.
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 fronts – creating a bold technology roadmap to support the carmaker's battery electric vehicles (BEV) and identifying opportunities to further strengthen the battery value chain.
“Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers,” says Stellantis Chairman John Elkann, in a press release. “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.”
CATL is bringing its battery manufacturing technology to Europe through its two plants in Germany and Hungary, which are already operational – the Spanish facility will enhance its capabilities.
“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,” adds 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.”
The transaction is expected to close in the course of 2025 and is subject to customary regulatory conditions.
