Summary
- Stellantis and CATL are entering a joint venture to build a European lithium iron phosphate battery plant, investing up to €4.1 billion
- The facility will be constructed in Zaragoza, Spain, and aims to be carbon neutral, with production starting by the end of 2026
- The plant could eventually reach a production capacity of 50 GWh per year, supporting Stellantis’ electric vehicle production in Europe
- The joint venture is part of a collaboration to strengthen the battery supply chain and develop technology for next-gen electric vehicles
- CATL’s existing presence in Europe will be strengthened by this new facility, aligning with the goal of making zero-carbon technology accessible globally.
Article
Stellantis and CATL have announced a joint venture to invest up to €4.1 billion in the construction of a large-scale European lithium iron phosphate battery plant in Zaragoza, Spain. The facility aims to be fully carbon neutral and could potentially reach a production capacity of 50 GWh per year depending on the growth of the electric vehicle market in Europe. This partnership is part of Stellantis’ Dare Forward 2030 plan to deliver more affordable and high-quality battery-electric vehicles in Europe.
The 50/50 joint venture was established through a memorandum of understanding signed by the two companies last year to create a local supply chain for LFP cells and packs for European EV production. This collaboration will also involve strengthening the battery supply chain and developing new technology roadmaps to support the production of next-gen battery-electric vehicles. Stellantis aims to incorporate various advanced battery technologies to provide competitive electric vehicle products to their customers.
CATL’s involvement in the new battery plant in Spain will complement its existing presence in Europe, with two battery plants in operation in Germany and Hungary. This partnership with Stellantis will leverage CATL’s battery manufacturing technology to further promote electric mobility in both Europe and the global market. The companies believe that their joint venture will be a major success story in the industry, contributing to making zero-carbon technology accessible worldwide.
Stellantis highlights its dual-chemistry battery strategy, utilizing both lithium-ion nickel manganese cobalt (NMC) and LFP batteries to power its current EV models. This strategy enables the company to cater to all customers while exploring innovative battery cell and pack technologies that could potentially power future electric vehicles. By incorporating a mix of battery technologies, Stellantis aims to continue driving towards a sustainable future and meeting the growing demand for electric vehicles in Europe.
The construction of the new battery plant in Zaragoza, Spain, is expected to support Stellantis’ commitment to a decarbonized future by implementing innovative battery production methods in a manufacturing site that already prioritizes clean and renewable energy. The companies involved express enthusiasm for the partnership and believe that it will lead to further advancements in zero-carbon technology globally. Through collaboration and cooperation, the joint venture aims to contribute to the wider adoption of electric vehicles and sustainable practices in the automotive industry.
Overall, the strategic agreement between Stellantis and CATL signifies a significant step towards enhancing battery technology and production capabilities for electric vehicles in Europe. With a focus on sustainability and innovation, the joint venture aims to accelerate the transition towards a cleaner and greener future in the automotive industry. By leveraging the expertise and resources of both companies, the partnership is poised to make a positive impact on the development and adoption of electric mobility worldwide.
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