#Spain #CATL #Stellantis #Zaragoza #LFP Batteries

Stellantis and CATL Form Partnership for Battery Production

In a landmark move to boost electric vehicle (EV) production, Stellantis and Contemporary Amperex Technology Co., Limited (CATL) have announced a joint venture that involves an investment of up to €4.1 billion towards establishing a large-scale lithium iron phosphate (LFP) battery manufacturing facility in Zaragoza, Spain. This collaboration aims to position Europe at the forefront of battery technology, catering to the growing demand for electric vehicles.

The state-of-the-art battery plant will be constructed in a staged approach, designed to be carbon-neutral from the outset. Plans indicate that production at the facility is expected to kick off by the end of 2026, with a potential output capacity of 50 GWh, contingent upon the evolution of the EV market in Europe and continued support from Spanish and European Union authorities.

This venture marks a strategic alignment between Stellantis’s aim to produce more affordable electric vehicles as part of its Dare Forward 2030 plan, which emphasizes the dual chemistry strategy of LFP and nickel manganese cobalt oxide (NMC) batteries. By enhancing their battery production capabilities and expanding their portfolio of high-quality and durable electric vehicles, Stellantis seeks to meet the rising consumer demand for eco-friendly transportation options across the B and C segments of the automotive market.

The agreement follows an earlier memorandum of understanding signed in November 2023, which laid the groundwork for local supply chains for LFP battery modules to support Stellantis's EU electric vehicle initiatives. Both companies are focused on developing a technology roadmap that will underpin advanced battery electric vehicle (BEV) production, positioning them to meet the needs of increasingly eco-conscious consumers.

John Elkann, Chairman of Stellantis, emphasized the significance of this joint venture, stating, "Stellantis is committed to a carbon-neutral future by leveraging all available advanced battery technologies to deliver competitively priced electric vehicles. This crucial partnership with CATL will bring innovative battery production technologies to a site that is already a leader in clean and renewable energy, fostering a comprehensive approach to sustainability."

CATL's Co-Founder and CEO, Robin Zeng, echoed Elkann's sentiment, noting the robust relationship with Stellantis that this joint venture solidifies. The advanced battery technologies and operational expertise that CATL brings to the table, combined with Stellantis’s deep-rooted business presence in Zaragoza, are poised to create a successful venture that supports a global shift to zero-carbon technologies.

CATL has already established a footprint in Europe with operational facilities in Germany and Hungary. The new Spanish plant will enhance CATL's ability to meet its clients' battery needs while supporting broader climate goals, underscoring the company's dedication to driving the transition to electric transportation and sustainable energy solutions within Europe and beyond.

In line with Stellantis’s dual chemistry approach, the new facility will allow the company to better serve its diverse customer base. This strategy enables them to invest in innovative battery technologies while working towards a target of achieving carbon neutrality across all operations by 2038, including an ambitious plan to offset remaining emissions to a minimal level.

The completion of this joint venture is slated for 2025, pending customary regulatory approvals. Through this collaboration, Stellantis and CATL are set to redefine the future of battery production and electric mobility, offering greener, more accessible vehicles to meet the demands of consumers and contribute positively to the planet’s climate objectives.