#Spain #CATL #Stellantis #Battery Plant #Zaragoza

Stellantis and CATL Join Forces

In a landmark move to bolster the production of electric vehicles, Stellantis and Contemporary Amperex Technology Co., Limited (CATL) have announced a substantial partnership. This collaboration involves an investment of up to €4.1 billion aimed at establishing a cutting-edge plant dedicated to the production of lithium iron phosphate (LFP) batteries in Zaragoza, Spain. This new facility is expected to begin operations by the end of 2026, with a potential capacity of up to 50 GWh, depending on market conditions and regulatory support from Spanish and EU authorities.

The collaboration emphasizes Stellantis' commitment to introducing more affordable battery electric vehicles (BEVs) as part of its strategic plan, Dare Forward 2030. By utilizing a dual chemistry strategy, which includes both LFP and nickel manganese cobalt (NMC) batteries, Stellantis is preparing to enhance its electric vehicle lineup, making high-quality and durable electric personal cars, crossovers, and SUVs more accessible to consumers in Europe.

Stellantis' initiative aligns with broader global climate goals, addressing the increasing demand for advanced battery technologies while promoting sustainability. The new plant aims to not only manufacture batteries but also to operate in a carbon-neutral manner throughout its lifecycle. This commitment reflects Stellantis' ambition to reach carbon neutrality across all its operations by 2038.

Strengthening Technological Capabilities

The agreement follows a memorandum of understanding signed in late 2023 between Stellantis and CATL, focused on enhancing local supplies of LFP battery cells and modules for electric vehicles in Europe. This strategic partnership marks a significant milestone, enhancing the capacity for innovation in the realm of battery technology and facilitating a long-term relationship targeting various aspects of the battery value chain.

John Elkann, Chairman of Stellantis, expressed enthusiasm about the partnership, stating, "This significant joint venture with our partner CATL brings innovative battery production to a manufacturing facility that is already a leader in clean and renewable energy. We are grateful to all stakeholders, especially the Spanish authorities, for their continuous support in making this announcement a reality."

Robin Zeng, Chairman and CEO of CATL, echoed these sentiments, noting the importance of their combined expertise. He remarked, "This joint venture elevates our collaboration with Stellantis to a new level. Our top-notch battery technology combined with Stellantis' operational experience in Zaragoza will ensure great success in this industry."

Future Implications for Electric Mobility

CATL brings significant experience and cutting-edge battery manufacturing technology with its existing facilities in Germany and Hungary. The Zaragoza facility will expand CATL's capability to support customer climate objectives while reinforcing its commitment to the growth of electrification and energy transformation in Europe and beyond.

As Stellantis strives towards a carbon-neutral future, the dual chemistry strategy involving both NMC and LFP battery types is crucial. The company is simultaneously exploring innovative technologies for battery cells and modules, ensuring that it remains at the forefront of the automotive industry.

The completion of the transaction is anticipated in 2025, pending usual regulatory approvals. With this partnership, Stellantis and CATL are set to significantly impact the electric vehicle market, ensuring a sustainable and innovative future in automotive technology.