Stellantis And CATL Jointly Invest €4.1 billion To Build LFP Battery Plant In Spain

1. A Major European Investment: The Zaragoza LFP Battery Plant

In a significant move for European electric vehicle production, Stellantis and Contemporary Amperex Technology Co., Limited (CATL) have officially announced a 50/50 joint venture. The partners will invest up to €4.1 billion to construct a large-scale Lithium Iron Phosphate (LFP battery) manufacturing facility at the existing Stellantis Zaragoza plant in Spain. This ambitious project, targeting the start of production by the end of 2026, is designed with a planned annual capacity of up to 50 GWh and aims to operate on fully carbon-neutral principles.

This venture represents a critical step in Stellantis’ “Dare Forward 2030” strategic plan. By localizing LFP battery production in Europe, the automaker strengthens its dual-chemistry strategy, enabling it to offer more affordable electric vehicles without compromising on range or quality. The new Stellantis Zaragoza plant will supply batteries for a range of popular B- and C-segment vehicles, including sedans, crossovers, and SUVs.

2. Strategic Context: Deepening a Key Automotive Partnership

The joint venture finalizes a partnership first outlined in a non-binding Memorandum of Understanding (MoU) signed in November 2023. The collaboration is built on two strategic pillars: co-developing a forward-looking technology roadmap for Stellantis’ next-generation EVs and exploring further opportunities to enhance the battery value chain in Europe.

For CATL, the world’s leading battery manufacturer, this LFP battery partnership is a strategic expansion of its European footprint. It complements CATL’s existing operations in Germany (a €1.8 billion plant with 14 GWh capacity, now operational) and its under-construction facility in Hungary (a €7.34 billion investment planned for 100 GWh). The Spanish project allows CATL to better serve localized customer demand with its advanced cell-to-pack (CTP) technology.

3. Leadership Perspectives on a Sustainable Future

John Elkann, Chairman of the Stellantis and Chairman of the Interim Executive Committee, said, “We are committed to a carbon-neutral future, embracing all available advanced battery technologies to bring competitive electric vehicle products to consumers. This joint venture with Ningde Times will introduce innovative battery production to a park that is already an advanced demonstration manufacturing site in clean and renewable energy use, which helps drive sustainable production methods.”

Zeng Yuqun, Chairman and CEO of CATL, said, “This partnership takes our collaboration with the Stellantis Group to a new level. I am confident that with CATL’ advanced battery technology and superior operational expertise, combined with Stellantis Group’s decades of experience in localized business operations in Zaragoza, this project will be a major success story for the industry. CATL aims to promote zero-carbon technology globally, and we look forward to working with our global partners through more innovative models.”

4. Implications for the European EV Landscape

It is worth noting that, before the joint venture with Stellantis to build a battery factory in Spain, CATL already has two factories in Europe, of which the German factory investment of about 1.8 billion euros, the initial planning capacity of 14GWh, has been put into operation; Hungary factory total investment of not more than 7.34 billion euros, is currently under construction, the planning capacity of 100GWh.

The establishment of this giga-scale LFP battery factory is more than a corporate expansion; it’s a signal of the accelerating electrification of Europe’s automotive heartland. Localizing the supply of cost-effective, durable, and safe LFP batteries reduces dependency on imports and secures a critical component for Stellantis’ electric future. This LFP battery partnership between a global automotive leader and the world’s foremost battery innovator is poised to make advanced electrification more accessible, supporting broader climate goals and transforming the economic landscape of the Aragon region.

5. Lithium Battery Testing Solutions Provider：IEST Instrument

IEST is a high-tech enterprise focusing on R&D and production of lithium ion battery tester. IEST is a professional manufacturer that integrating laboratory instrument R&D and production, method development, instrument sales and technical services. Committed to providing leading testing solutions and services for the global new energy field, IEST company serves key clients like CATL, BYD, Huawei, Svolt, GM, Leyden, Sintef, Factorial, Cabot, Cuberg.