Listen to this story:

• Massive Investment: Stellantis and CATL will invest up to €4.1 billion to build a 50 GWh lithium iron phosphate (LFP) battery plant in Zaragoza, Spain, targeting production by the end of 2026.
• Affordable EVs: The plant supports Stellantis’ strategy to offer durable and cost-effective battery-electric vehicles (BEVs), bolstering its Dare Forward 2030 plan.
• Decarbonization Leadership: The facility is designed to be fully carbon-neutral, advancing Stellantis’ commitment to achieving net zero emissions by 2038.

The Story:

Stellantis and CATL are investing €4.1 billion in a joint venture to construct a state-of-the-art lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The facility, targeting a capacity of up to 50 GWh, will begin production by late 2026, contingent on market evolution and regulatory support.

“Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers,” said John Elkann, Stellantis Chairman.

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Why It Matters:

This partnership aligns with Stellantis’ dual-chemistry approach, leveraging lithium-ion nickel manganese cobalt (NMC) and LFP technologies to cater to various market needs. The new plant will play a pivotal role in providing affordable and reliable BEVs across Europe’s B and C vehicle segments.

Robin Zeng, Chairman and CEO of CATL, emphasized the partnership’s potential, stating, “Our cutting-edge battery technology combined with Stellantis’ decades-long experience in Zaragoza will ensure a major success story in the industry.”

Broader Impact:

The project enhances Europe’s battery value chain and contributes to global e-mobility and energy transition goals. Stellantis is making strides toward its goal of becoming a carbon net-zero corporation by 2038.

The Spanish facility will complement CATL’s existing battery plants in Germany and Hungary, ensuring scalability and innovation in advanced battery production.

Looking Ahead:

The transaction is expected to close in 2025, with production slated to begin a year later. This move underscores the increasing global momentum toward sustainable, electrified transportation.

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