#Spain #CATL #Stellantis #Battery Plant #Zaragoza

Major Investment by Stellantis and CATL in Spain

In a major move towards sustainable energy and battery production, Stellantis, in collaboration with Contemporary Amperex Technology Co., Limited (CATL), has announced an investment of up to €4.1 billion. This funding aims to establish a joint venture that will construct a cutting-edge lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.

The new facility is poised to commence production by the end of 2026, with an impressive capacity of up to 50 GWh, depending on market conditions and continuous support from Spanish and European Union authorities. This joint venture not only signifies a step forward in regional battery production but also highlights Stellantis's commitment to providing more affordable battery electric vehicles (BEVs) as part of its Dare Forward 2030 strategic plan.

This venture represents a strategic partnership where Stellantis will leverage its best-in-class LFP technology in Europe, which is essential for producing a range of electric vehicles, including sedans, crossovers, and SUVs designed to meet the evolving demands for durability and affordability in the B and C segments across the market.

In November of 2023, both companies had previously signed a non-binding memorandum of understanding for the local supply of battery cells and modules for their electric vehicles in Europe. This initial collaboration set the groundwork for a longer-term strategic alliance focused on technological advancements and supply chain resilience in battery manufacturing, allowing both parties to innovate and enhance their offerings in the growing electric vehicle sector.

According to Stellantis Chairman John Elkann, “Our commitment to a decarbonized future encompasses all advanced battery technologies available, ensuring competitive electric vehicle products for our customers.” He emphasized that this joint venture with CATL reinforces their shared vision and commitment to sustainable practices and the use of clean, renewable energy in production facilities.

CATL’s Chairman and CEO, Robin Zeng, expressed optimism about the venture, stating, “This joint venture has elevated our collaboration with Stellantis to new heights. Our advanced battery technology combined with Stellantis's local operational expertise and management in Zaragoza will ensure success in this sector.” Zeng also mentioned that CATL’s goal includes making zero-carbon technology accessible worldwide, thereby enhancing their footprint in Europe while contributing to climate goals.

The Spanish battery plant aims to be entirely carbon-neutral and will be rolled out in phases, corresponding with evolving market needs and advancements in technology. This development is crucial in supporting ever-increasing demands for advanced battery tech, underscoring the importance of innovation as automakers pivot towards electric mobility to meet climate commitments globally.

Furthermore, Stellantis's strategy incorporates a dual approach in battery chemistry, focusing on both nickel manganese cobalt (NMC) and lithium iron phosphate (LFP). This diversity enables them to cater to a broader customer base while exploring innovative battery cell and pack technologies.

In alignment with global environmental strategies, Stellantis aims to achieve net-zero carbon across all operations by 2038, with only a single-digit compensation for remaining emissions. The closing of the joint venture is expected in 2025, subject to customary regulatory approvals.

This investment not only strengthens Europe’s position in global battery production but also highlights the ongoing collaboration between traditional automakers and battery manufacturers to drive innovation in electric mobility. As the world shifts towards greener energy solutions, such strategic partnerships are becoming increasingly vital for sustainability in the automotive industry.