#Spain #CATL #Stellantis #Zaragoza #battery

Stellantis and CATL Joint Venture for LFP Battery Plant

Stellantis and Contemporary Amperex Technology Co., Limited (CATL) have recently made headlines by announcing a groundbreaking agreement to invest up to €4.1 billion in a joint venture aimed at establishing a significant lithium iron phosphate (LFP) battery manufacturing plant located at Stellantis' existing site in Zaragoza, Spain. This ambitious project is poised to align with the growing demand for electric vehicles and the consequent need for advanced battery technologies in Europe.

The new facility is planned to begin production by the end of 2026, and is designed to achieve an impressive production capacity of up to 50 GWh. This capacity is contingent upon the evolution of the electrical market in Europe, as well as ongoing backing from the Spanish government and the European Union. As part of a 50-50 joint venture, this collaboration is expected to enhance Stellantis' offerings of LFP batteries in Europe, which will facilitate the production of affordable and durable electric vehicles, including passenger cars, crossovers, and SUVs leaning towards the B and C segments.

This strategic partnership follows a non-binding memorandum of understanding (MOU) signed in November 2023. The MOU laid the groundwork for the local supply of LFP battery cells and modules, marking the beginning of a long-term collaboration aimed at creating an innovative technology roadmap that will support advanced battery electric vehicles produced by Stellantis.

Stellantis aims to offer competitive electric vehicle products to its customers and is embracing a future focused on decarbonization. According to John Elkann, Chairman of Stellantis, the joint venture represents a significant step towards a sustainable future. He expressed gratitude towards stakeholders and local authorities for their support and emphasized the initiative's alignment with Stellantis' broader strategic vision: Dare Forward 2030, aimed at promoting affordability in battery electric vehicles.

Robin Zeng, the Chairman and CEO of CATL, highlighted the importance of this venture, indicating that it takes their cooperation to new heights. CATL brings cutting-edge battery manufacturing technology to the European market, building on its existing plants in Germany and Hungary. The addition of the Zaragoza facility not only enhances CATL’s capabilities but also demonstrates a commitment to advancing e-mobility and supporting climate goals across the continent.

The collaboration will enable Stellantis to adopt a dual-chemistry approach for battery outputs, employing both lithium-ion nickel manganese cobalt (NMC) batteries as well as LFP options. This strategy will ensure a diverse offering that meets varied customer needs while supporting Stellantis’ aspiration to become a carbon net-zero corporation by 2038, accounting for all emission scopes.

Although the details remain under review, the joint venture is expected to finalize by 2025, pending customary regulatory approvals. Overall, this project not only strengthens the bond between Stellantis and CATL but also positions them as key players in driving the automotive industry towards a more sustainable horizon, as Europe and the world move towards an electrified future.