Summary
- Stellantis and CATL are forming a joint venture to build a lithium iron phosphate battery plant in Spain
- The plant is targeted to start production by the end of 2026 with up to 50 GWh of annual capacity
- CATL will enhance its capabilities to supply European automakers and the global market with the Spanish facility
- Stellantis will use both lithium-ion NMC and LFP batteries in their electric vehicle lineup
- The joint venture aims to bring innovative battery production to a site that is already a leader in clean and renewable energy.
Article
Stellantis and CATL have agreed to invest up to €4.1 billion to form a joint venture to build a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The plant is set to start production by the end of 2026 at Stellantis’s Zaragoza site, with a potential capacity of up to 50 GWh annually. The success of the plant will depend on the growth of the EV market in Europe and continued support from authorities in Spain and the European Union. This agreement follows a non-binding memorandum of understanding signed in November 2023 for the local supply of LFP battery cells and modules, as well as collaboration on creating a technology roadmap to support Stellantis’s EVs.
CATL, a Chinese battery manufacturer with facilities in Germany and Hungary, will use the Spanish plant to enhance its capability to supply European automakers and the global market with LFP batteries. Stellantis plans to employ a dual-chemistry approach in its electric vehicles, utilizing both lithium-ion nickel manganese cobalt (NMC) and LFP batteries. The joint venture with CATL will enable Stellantis to offer a wider range of electric passenger cars, crossovers, and SUVs in the B and C segments with intermediate ranges in Europe. Stellantis Chairman, John Elkann, emphasized the company’s commitment to embracing advanced battery technologies to provide competitive electric vehicle products to customers.
The partnership between Stellantis and CATL is a significant step towards innovative battery production in a manufacturing site that is already a leader in clean and renewable energy. By collaborating with CATL on establishing a local LFP battery plant in Spain, Stellantis aims to strengthen its position in the EV market and meet the increasing demand for electric vehicles in Europe. The companies’ long-term collaboration will focus on developing a technology roadmap to support Stellantis’s EV lineup and opportunities to enhance the battery value chain.
The Zaragoza plant will play a crucial role in advancing electric mobility in Europe, as it will contribute to the availability of critical components required for the production of electric vehicles. With a potential capacity of up to 50 GWh annually, the plant will significantly boost the region’s battery manufacturing capabilities, supporting the growth of the EV market in Europe. This strategic investment by Stellantis and CATL demonstrates their commitment to sustainable transportation and the shift towards electrification in the automotive industry.
The agreement between Stellantis and CATL signifies a major milestone in the development of electric vehicle technology and infrastructure in Europe. By establishing a joint venture to build a cutting-edge LFP battery plant in Zaragoza, the companies are positioning themselves as key players in the transition to electric mobility. Through this partnership, Stellantis aims to bring more competitive electric vehicle products to the market, catering to the growing demand for sustainable transportation solutions. The collaboration between Stellantis and CATL highlights their dedication to innovation and environmental sustainability in the automotive sector.
Overall, the joint venture between Stellantis and CATL to build a state-of-the-art LFP battery plant in Spain represents a significant investment in the future of electric mobility. By combining their expertise and resources, the companies aim to accelerate the adoption of electric vehicles in Europe and strengthen their position in the rapidly evolving automotive industry. The establishment of the Zaragoza plant will not only enhance battery manufacturing capabilities in the region but also contribute to the development of a more sustainable transportation ecosystem. This collaboration underscores the importance of strategic partnerships in driving innovation and addressing the challenges of climate change through technological advancements in the automotive sector.
Read the full article here
