Stellantis and CATL join forces to build a massive battery plant in Spain

Stellantis, the automotive giant behind brands like Jeep, Fiat, and Peugeot, has announced a major partnership with CATL, the world's leading battery manufacturer. Together, they will invest up to $4.55 billion to construct a state-of-the-art lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.

The new facility, planned to be entirely carbon-neutral, will be built at Stellantis' existing production site in Zaragoza. It is expected to start production by the end of 2026 and could reach an annual capacity of 50 GWh, enough to power hundreds of thousands of EVs. The investment will be rolled out in phases, and will depend on market developments and support from Spanish and European Union authorities.

John Elkann, the chairman of Stellantis, expressed his enthusiasm for the new venture. "This joint venture with CATL will bring innovative battery production to a manufacturing site that is already a leader in clean and renewable energy," he said.

The partnership with CATL will allow Stellantis to integrate LFP battery technology into its electric crossover and SUV models in the B and C segments. LFP batteries have gained popularity in the EV industry due to their lower production costs and enhanced safety characteristics.

CATL's chairman and CEO, Robin Zheng, also expressed confidence in the joint venture, stating, "Our cutting-edge battery technology and outstanding operation know-how combined with Stellantis' decades-long experience in running business locally in Zaragoza will ensure a major success story in the industry."

This new facility is CATL's third battery plant in Europe, joining existing operations in Germany and Hungary. It also aligns with Stellantis' ambitious goal of achieving net zero carbon neutrality by 2038. The company is pursuing a dual-chemistry battery strategy, using both LFP and lithium-ion nickel manganese cobalt (NMC) cells in its EVs.

Source