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

• The joint venture will build a new lithium iron phosphate (LFP) battery plant at Stellantis’ facility in Zaragoza, Spain.

• Production is planned to start at the end of 2026, with a potential capacity of 50 GWh

• Stellantis is committed to utilizing its dual-chemistry strategy to introduce more affordable pure electric vehicles in support of its Dare Forward 2030 strategic plan

• The plant will enable CATL to better meet customer demand for advanced battery technologies and support global climate goals

On December 10th, CATL and Stellantis Group jointly announced – both parties will each hold 50% of the shares to establish a joint venture to build a large-scale lithium iron phosphate(LFP) battery plant in Zaragoza, Spain, with an investment of up to €4.1 billion. The plant is scheduled to start production by the end of 2026, with a planned annual capacity of up to 50 GWh. At the same time, the plant will be designed in accordance with fully carbon-neutral standards, and the investment plan is currently progressing steadily.

The establishment of this joint venture will enhance Stellantis Group’s advanced LFP battery advantage in Europe, and help it continue to develop its strength in the B-segment and C-segment markets, providing consumers with better quality, more durable and affordable electric sedans, crossovers and SUVs.

Stellantis Group is one of the world’s leading automobile manufacturers, aiming to provide users with environmentally friendly, safe and economical mobility.

In November 2023, Stellantis Group signed a non-binding Memorandum of Understanding (MOU) with CATL to serve Stellantis Group’s electric vehicle manufacturing in Europe by supplying localized Lithium Iron Phosphate (LFP) batteries and packs. At the same time, the two companies announced the establishment of long-term cooperation in two strategic directions: first, to develop a bold technology roadmap to support the development of Stellantis Group’s advanced pure electric vehicles; and second, to actively explore new cooperation opportunities to further enhance the battery value chain.

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.”

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.

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