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Stellantis and CATL have announced a joint venture to invest up to €4.1 billion in constructing a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The facility, designed to be carbon neutral, aims to support Stellantis’ Dare Forward 2030 strategy and CATL’s global commitment to advancing e-mobility. The production is expected to begin by the end of 2026, with a potential capacity of up to 50 GWh.
Key Highlights:
- Investment: Up to €4.1 billion for a 50-50 joint venture between Stellantis and CATL.
- Location: Zaragoza, Spain, leveraging a site known for its renewable energy practices.
- Capacity: The plant is projected to reach up to 50 GWh, depending on market evolution and regulatory support.
- Timeline: Production is targeted to commence by late 2026.
- Technology: Dual-chemistry approach with lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP).
- Sustainability Goals: The plant will operate as a carbon-neutral facility, aligning with Stellantis’ goal to achieve net-zero emissions by 2038 and CATL’s commitment to carbon neutrality in core operations by 2025.
The joint venture reflects Stellantis’ dedication to producing affordable and durable battery-electric vehicles (BEVs) for B and C segments. This partnership strengthens Stellantis’ LFP offering in Europe and enhances CATL’s ability to meet the demand for advanced battery technologies.
In 2023, Stellantis and CATL signed a memorandum of understanding (MOU) for local supply and strategic collaboration on battery cell and module production for European electric vehicles. John Elkann, Stellantis Chairman, stated, “This important joint venture… will bring innovative battery production to a manufacturing site that is already a leader in clean and renewable energy.”
CATL, a leader in battery manufacturing, is expanding its European presence with plants in Germany and Hungary, alongside this new facility in Spain. Chairman and CEO Robin Zeng highlighted the collaboration’s potential, emphasizing the joint venture’s significance in advancing zero-carbon technology globally.
This initiative also aligns with Stellantis’ Dare Forward 2030 plan, emphasizing sustainability, innovation, and the growth of e-mobility solutions. The transaction is expected to close by 2025, pending customary regulatory approvals.
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