Stellantis and CATL to Invest Up to €4.1 Billion in Spanish Battery Factory

Major Investment in Battery Production in Spain

In a significant move towards advancing electric vehicle (EV) technology, Stellantis and Contemporary Amperex Technology Co., Limited (CATL) have announced a major investment of up to €4.1 billion to establish a joint venture. This collaboration will lead to the creation of a new lithium iron phosphate (LFP) battery manufacturing facility located at Stellantis' site in Zaragoza, Spain. The factory is set to start production by the end of 2026, with a potential capacity of up to 50 GWh, contingent on the evolution of the electric vehicle market in Europe and further support from Spanish and European authorities.

Stellantis, committed to producing affordable battery-powered vehicles, aims to fulfill its Dare Forward 2030 strategic plan through this initiative, leveraging a dual-chemistry strategy. The establishment of this facility will enhance CATL's capability to meet customer needs for advanced battery technologies, while also supporting global climate ambitions.

The Strategic Cooperation

The joint venture will facilitate the production of high-quality, durable, and competitively priced EVs, primarily in the B and C segments. Stellantis and CATL have previously signed a preliminary agreement in November 2023 for local supply of LFP battery cells and modules for EV production in Europe. This partnership is also aimed at bolstering the battery value chain, paving the way for innovative technologies to support battery electric vehicles (BEVs).

John Elkann, CEO of Stellantis, emphasized the company's commitment to future decarbonization and the need for advanced battery technologies to provide competitive EV products to consumers. He stated, “The joint venture established with our partner CATL will enable innovative battery production at a facility that is already a leader in clean and renewable energy, supporting a comprehensive approach to sustainability.”

CATL, on the other hand, is looking to leverage its cutting-edge battery technology and extensive operational expertise alongside Stellantis’ local market presence in Zaragoza. Robin Zeng, Chairman and CEO of CATL, remarked, “This joint venture has taken our collaboration with Stellantis to a new level, and I believe that our state-of-the-art battery technology, along with Stellantis' experience in running local operations, will ensure significant success in this industry.”

Commitment to Climate Goals

The new Spanish facility is expected to further CATL’s ambition to provide zero-emission technology worldwide while underlining its commitment to the development of e-mobility and energy transformation in Europe. Stellantis employs a dual-chemistry approach, utilizing both nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) chemistries to cater to all customer segments while exploring innovative battery cell and pack technologies.

Notably, Stellantis is on track to achieve net-zero carbon emissions by 2038, including all scopes, with a targeted single-digit percentage compensation for residual emissions. The transaction, subject to customary regulatory conditions, is anticipated to finalize in 2025.

This venture not only signifies a step towards a more sustainable future but also reinforces the growing importance of local battery production as automakers pivot to meet the rising demand for electric vehicles in Europe and beyond. As countries escalate their focus on climate action, investments such as these are vital to fulfilling both corporate and governmental sustainability commitments.