Stellantis and CATL have announced a groundbreaking agreement to invest up to €4.1 billion in a joint venture to establish a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. This initiative is a significant step toward advancing electric vehicle (EV) technology and achieving carbon neutrality. The state-of-the-art facility is designed to be fully carbon neutral and will be implemented in several phases, with production targeted to commence by the end of 2026.
The proposed battery plant aims to reach a capacity of up to 50 GWh, depending on market developments in Europe and continued support from Spanish and European Union authorities. The 50-50 joint venture between Stellantis and CATL will significantly enhance Stellantis’ LFP battery offerings, enabling the automaker to deliver high-quality, durable, and cost-effective battery-electric vehicles (BEVs) in Europe. These vehicles will primarily cater to the B and C segments, including passenger cars, crossovers, and SUVs with intermediate driving ranges.
In November 2023, Stellantis and CATL signed a non-binding memorandum of understanding (MOU) to ensure the local supply of LFP battery cells and modules for EV production in Europe. The agreement also marked the beginning of a long-term collaboration focusing on two strategic objectives: creating an advanced technology roadmap to support Stellantis’ next-generation BEVs and exploring opportunities to strengthen the battery value chain.
Stellantis Chairman John Elkann highlighted the importance of the joint venture, stating, “Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive electric vehicle 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. I want to thank all stakeholders involved in making today’s announcement a reality, including the Spanish authorities for their continued support.”
Robin Zeng, Chairman and CEO of CATL, echoed this sentiment, emphasizing the partnership’s potential to revolutionize the EV industry. “The joint venture has taken our cooperation with Stellantis to new heights, and I believe our cutting-edge battery technology and outstanding operational know-how, combined with Stellantis’ decades-long experience in running businesses 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, and we look forward to cooperating with our partners globally through more innovative cooperation models.”
CATL has already established a robust presence in Europe through its battery manufacturing plants in Germany and Hungary. The Zaragoza facility will further bolster CATL’s capabilities, enabling it to support customers’ climate goals and reinforcing its commitment to e-mobility and the global energy transition. This project also aligns with Europe’s broader objectives to enhance energy independence and reduce carbon emissions.
Stellantis, meanwhile, is adopting a dual-chemistry approach to battery production, utilizing both lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) technologies. This strategy ensures the automaker can meet diverse customer needs while maintaining cost efficiency and performance standards. Stellantis has also committed to becoming a carbon net zero corporation by 2038, covering all scopes of emissions with minimal reliance on offsets.
The transaction to formalize the joint venture is expected to close by 2025, pending customary regulatory approvals. Once operational, the Zaragoza battery plant will not only contribute to the decarbonization of the automotive sector but also stimulate local economic growth and position Spain as a pivotal player in Europe’s EV ecosystem.
The partnership between Stellantis and CATL represents a monumental leap forward in the electrification of transportation. By combining Stellantis’ expertise in automotive manufacturing with CATL’s advanced battery technology, the venture is set to drive innovation, sustainability, and competitiveness in the rapidly evolving EV market. With ambitious plans for capacity expansion and technological development, the project underscores the commitment of both companies to creating a cleaner and more sustainable future for mobility.
