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Stellantis and CATL Join Forces

Stellantis, in partnership with Contemporary Amperex Technology Co., Limited (CATL), has announced a significant investment plan amounting to €4.1 billion aimed at establishing a cutting-edge lithium iron phosphate (LFP) battery manufacturing facility in Zaragoza, Spain. This venture represents a pivotal step in Stellantis's initiative to provide affordable, technologically advanced electric vehicles as part of their strategic plan for sustainable development, dubbed Dare Forward 2030.

Aiming for Carbon Neutrality

The new battery plant, designed to be fully carbon-neutral, will kick off production by the end of 2026. Depending on market conditions and supportive regulatory frameworks from Spanish and European authorities, the facility could reach production capacities of up to 50 GWh. The collaborative venture, structured with a 50-50 partnership between Stellantis and CATL, aims to cater to the growing demand for electric vehicles in Europe through superior lithium iron phosphate battery technology.

John Elkann, Chairman of Stellantis, emphasized the company’s commitment to a decarbonized future encompassing all cutting-edge battery technologies. He noted that this venture would integrate innovative manufacturing techniques into an existing facility already known for its clean energy practices, thereby contributing to a comprehensive sustainable approach throughout the production process.

Enhancing Local Supply Chains

The joint effort is also expected to enhance local supplies of battery cells and modules, which Stellantis plans to use in its electric vehicle lineup. In November 2023, Stellantis and CATL signed a memorandum of understanding that outlined the local supply chain for battery components, marking the beginning of a long-term collaboration focused on developing advanced battery electric vehicles (BEV).

Robin Zeng, the chairman of CATL, shares that this partnership marks a significant milestone, combining CATL's leading battery technology with Stellantis's local industry expertise. Their goal is to deliver zero-emissions technology globally while addressing climate change challenges and supporting customers' increasing demands for innovative energy solutions.

Commitment to Sustainability

Stellantis has adopted a dual-chemistry approach, utilizing both nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) technologies to meet diverse customer requirements and aggressively explore new battery technologies. The company is on track to achieve carbon neutrality by 2038 across all operations, with significant efforts towards minimizing the impact of their remaining emissions.

As the electric vehicle market in Europe gains momentum, the Zaragoza facility is anticipated to play a pivotal role in Stellantis's broader electric mobility strategy. This initiative underscores the company's dedication to integrating advanced battery solutions while also bolstering the local economy and contributing to Spain's sustainable energy goals.

In summary, the establishment of this LFP battery plant is not just about manufacturing; it’s a commitment from Stellantis and CATL to innovate and lead in the quest for sustainable transportation solutions. As the auto industry evolves, collaborations like this play a fundamental role in shaping the future of green mobility, benefiting consumers and the environment alike.

Looking Ahead

The completion of the deal is expected in 2025, subject to the typical regulatory conditions. With the expected influx of new technologies and capabilities, this venture will not only enhance Stellantis's production capabilities but also signify an important move toward cleaner energy and more responsible manufacturing practices in the automotive sector.