Stellantis and CATL Join Forces with €4.1 Billion Investment to Build a State-of-the-Art Battery Plant in Spain

Stellantis and CATL's Ambitious Joint Venture in Spain

In a bold move to advance electric vehicle technology, Stellantis and Contemporary Amperex Technology Co., Limited (CATL) announced a joint venture worth up to €4.1 billion to build a lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. This strategic partnership marks a significant step towards achieving carbon neutrality and enhancing the electric vehicle landscape in Europe.

The new facility is set to begin operations by the end of 2026, with the potential to produce up to 50 GWh of LFP batteries. Located strategically at Stellantis' existing manufacturing site, this plant is expected to cater to the increasing demand for battery electric vehicles (BEVs) across Europe.

Stellantis aims to leverage its dual-chemistry strategy, which combines lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) technologies. This approach not only broadens their product offerings but also caters to a diverse range of consumers. John Elkann, Chairman of Stellantis, emphasized the company's commitment to a decarbonized future, stating that this joint venture would play a key role in bringing affordable and high-quality electric vehicles to the market.

The announcement comes on the heels of an earlier non-binding memorandum of understanding signed in November 2023, indicating a long-term collaboration focused on local LFP battery cell and module supply for electric vehicle production in Europe. This ensures that Stellantis can reinforce its supply chain and further its ambitious strategic plan, entitled 'Dare Forward 2030'.

Robin Zeng, Chairman and CEO of CATL, expressed enthusiasm about the venture, highlighting CATL's advanced battery technology and operational expertise. He stated that this partnership would establish a success story in the battery manufacturing sector, crucial for meeting the global climate objectives.

Notably, the Zaragoza plant aims to be completely carbon neutral, aligning with both companies’ sustainability objectives. As part of the broader vision, CATL intends to enhance its operations in Europe, adding to its existing plants in Germany and Hungary, which already support customer climate initiatives. This expansion will also underscore Stellantis' commitment to reaching carbon neutrality across all scopes by 2038.

With an established infrastructure and collaborative spirit, this joint venture is poised to reshape the electric vehicle landscape, making zero-carbon technology more accessible. The collaboration helps not only meet current market demands but also addresses future needs in the face of a rapidly changing automotive industry.

As this deal, set for completion in 2025, moves ahead, it stands as a testament to the growing importance of clean energy technologies within the automotive sector. The collaboration between Stellantis and CATL could be a defining feature of Europe's energy transition as the demand for electric vehicles surges.

Conclusion
Stellantis and CATL's ambitious €4.1 billion investment is set to make waves in the battery manufacturing industry and electric vehicle market, showcasing a commitment to sustainability and innovation. Both companies are stepping into a future where clean energy solutions become integral to everyday transportation. Stay tuned as this partnership develops and aims to create a greener, more sustainable automotive future in Europe.