Stellantis and CATL Invest in €4.1 Billion Spanish LFP Battery Facility

• New Battery Facility in Zaragoza: Stellantis and CATL will establish a lithium iron phosphate (LFP) battery plant at Stellantis' site in Zaragoza, Spain.
• Production Timeline: Operations are expected to begin by late 2026, with a potential production capacity of up to 50 GWh.
• Strategic Goals: This project supports Stellantis' "Dare Forward 2030" plan, aiming to produce more affordable electric vehicles using a dual-chemistry battery strategy.
• Global Climate Commitment: The plant will enable CATL to meet advanced battery technology demands while contributing to global climate objectives.

Overview of the Joint Venture

Stellantis and CATL will jointly invest up to €4.1 billion in this large-scale European battery facility, designed to be fully carbon-neutral. The project will be executed in multiple phases and relies on support from Spanish and EU authorities to achieve its goals.

The plant’s maximum capacity of 50 GWh will depend on the evolution of Europe’s electric market. This venture will reinforce Stellantis' ability to produce affordable, durable electric vehicles, especially in the B and C segments, including passenger cars, crossovers, and SUVs with intermediate ranges.

Background and Strategic Collaboration

In November 2023, Stellantis and CATL signed a non-binding memorandum of understanding (MOU) to locally supply LFP battery cells and modules in Europe. The partnership also focuses on a long-term roadmap for advancing Stellantis' battery electric vehicles (BEVs) and strengthening the battery supply chain.

Leadership Perspectives

• John Elkann, Chairman of Stellantis: “This joint venture with CATL brings innovative battery production to Zaragoza, a site already excelling in clean energy. We remain committed to a decarbonized future and delivering competitive EV products to our customers.”
• Robin Zeng, Chairman and CEO of CATL: “This partnership represents a new milestone in our collaboration with Stellantis. Combining CATL's advanced battery technology with Stellantis' local expertise will drive success in the industry while advancing global zero-carbon goals.”

Broader Context

CATL is expanding its presence in Europe with battery manufacturing plants already operational in Germany and Hungary. The new facility in Spain will further support e-mobility and energy transition efforts in Europe and globally.

Stellantis is pursuing a dual-chemistry battery approach, utilizing both lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) to meet diverse customer needs. The company remains on track to achieve carbon net zero by 2038, with minimal residual emissions requiring offset.

Regulatory and Transactional Details

The joint venture is expected to be finalized in 2025, subject to regulatory approvals and conditions.

Edit by paco