Stellantis and CATL to Invest Up to €4.1 Billion in Joint Venture for Large-Scale LFP Battery Plant in Spain
- Joint venture to build an all-new lithium iron phosphate (LFP) battery plant at Stellantis' Zaragoza, Spain site
- Production is planned to start by end of 2026 and could reach up to 50 GWh capacity
- Stellantis is committed to bringing more affordable battery electric vehicles in support of its Dare Forward 2030 strategic plan leveraging its dual-chemistry strategy
- Plant will enable CATL to better meet customers' need for advanced battery technology and support global climate ambitions
NINGDE, China, Dec. 10, 2024 /PRNewswire/ -- Stellantis and CATL today announced they have reached an agreement to invest up to €4.1 billion to form a joint venture that will 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.
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.
"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."
"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 is bringing 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.
Stellantis is employing a dual-chemistry approach – lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (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.
The transaction is expected to close in the course of 2025 and is subject to customary regulatory conditions.
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