In order to establish a joint venture that would construct a massive European lithium iron phosphate (LFP) battery facility in Zaragoza, Spain, Stellantis and CATL have revealed plans to invest up to 4.1 billion euros (Rs 36,030 crore). The battery factory, which is entirely carbon neutral by design, will be built in stages and with various investment strategies.
The plant is expected to begin production at Stellantis’ Zaragoza, Spain location by the end of 2026. Depending on how the European electricity market develops and on the ongoing assistance of Spanish and EU authorities, the facility’s capacity might reach up to 50 GWh.
Stellantis will be able to offer more premium, long-lasting, and reasonably priced battery-electric passenger cars, crossovers, and SUVs in the B and C sectors with intermediate ranges thanks to the 50/50 joint venture between CATL and Stellantis, which will enhance the automaker’s best-in-class LFP offer in Europe.
Stellantis and CATL signed a non-binding Memorandum of Understanding (MoU) in November 2023 to establish a long-term partnership on two strategic fronts: developing a bold technology roadmap to support Stellantis’ advanced battery electric vehicles (BEV) and identifying opportunities to further strengthen the battery value chain. The agreement calls for the local supply of LFP battery cells and modules for electric vehicle production in Europe.
Stellantis Chairman John Elkann, said, “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.”
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