Stellantis & CATL Invest US$4.43bn LFP Battery Plant
In a groundbreaking collaboration, Stellantis and CATL have announced plans to invest up to US$4.43bn in a joint venture to establish a state-of-the-art lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.
The facility, targeting production by the end of 2026, is poised to play a pivotal role in Europe’s EV landscape, with a capacity of up to 50 GWh.
Supporting Stellantis’ Dare Forward 2030 Vision
Stellantis, a global leader in automotive innovation, is leveraging the partnership to accelerate its commitment to affordable and sustainable electric mobility.
Under its Dare Forward 2030 strategy, Stellantis aims to become a carbon net-zero mobility tech company by 2038.
The bold vision is backed by investments in advanced battery technologies, including its dual-chemistry approach using lithium-ion nickel manganese cobalt (NMC) and LFP batteries.
John Elkann, Chairman of Stellantis, stated: “Stellantis is committed to a decarbonised future, embracing all available advanced battery technologies to bring competitive EV products to our customers.”
“This important joint venture with our partner CATL will bring innovative battery production to a manufacturing site that is already a leader in clean and renewable energy, helping drive a 360-degree sustainable approach.”
CATL: A pioneer in battery innovation
Contemporary Amperex Technology Co., Limited (CATL), a global leader in energy technology, brings cutting-edge battery manufacturing expertise to the partnership.
With existing facilities in Germany and Hungary, CATL has consistently ranked as the world’s top EV battery supplier.
Its commitment to carbon neutrality by 2025 for core operations and by 2035 across the supply chain highlights its leadership in energy transition efforts.
Robin Zeng, Chairman and CEO of CATL, stated, “The joint venture has taken our cooperation with Stellantis to new heights.”
“I believe our cutting-edge battery technology and outstanding operational know-how, combined with Stellantis’ decades-long experience in running business locally in Zaragoza, will ensure a major success story in the industry. CATL’s goal is to make zero-carbon technology accessible across the globe.”
Enhancing EV production and sustainability
The Zaragoza facility will enable Stellantis to expand its range of affordable, durable battery-electric vehicles (BEVs) across the B and C segments, including passenger cars, crossovers and SUVs with intermediate ranges.
It aligns with Stellantis’ strategy to make sustainable EVs more accessible to consumers, ensuring it meets the growing demand for EVs in Europe.
By design, the plant will operate completely carbon-neutral, aligning with both companies’ commitment to sustainability.
Additionally, the project has received significant support from Spanish authorities and the European Union, which view it as a strategic step toward achieving climate goals.
Strengthening the battery value chain
The partnership builds on the non-binding memorandum of understanding (MOU) signed by Stellantis and CATL in November 2023.
The MOU established a long-term collaboration focused on a bold technology roadmap for Stellantis’ advanced BEVs and opportunities to strengthen the battery value chain in Europe.
A milestone for the industry
The venture between Stellantis and CATL is expected to close in 2025, pending regulatory approvals.
Combining Stellantis' automotive manufacturing expertise and CATL’s battery innovation leadership, the Zaragoza plant marks a significant step forward for the EV industry.
As Stellantis and CATL unite to push the boundaries of sustainable mobility, the partnership sets a powerful example of collaboration driving global progress toward carbon neutrality and technological innovation.
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