Stellantis and CATL signed an agreement to invest €4.1 billion in a joint venture to build a large lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The company plans to build the plant in stages, targeting carbon neutrality, with production expected to start by 2026.
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Ambitious Capacity and Market Impact
The facility aims to reach 50 GWh capacity as the European market grows, supported by Spanish and EU authorities. This collaboration will strengthen Stellantis’ position in Europe by enhancing its LFP battery offerings, enabling the company to deliver more high-quality, affordable battery-electric vehicles (BEVs) in the B and C segments, particularly for crossovers, SUVs, and passenger cars with intermediate ranges
This venture follows a non-binding memorandum of understanding (MOU) signed in November 2023 between Stellantis and CATL. The MOU focused on supplying LFP battery cells for EV production in Europe and advancing battery technology and value chains.
John Elkann, Stellantis Chairman said, “Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers.”
He added, “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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CATL’s Expansion and Technological Leadership
CATL will expand its European operations with this new facility, complementing its existing plants in Germany and Hungary. CATL aims to make zero-carbon technology globally accessible, and this venture strengthens its role in Europe’s energy transition and mobility.
Stellantis will use NMC and LFP battery technologies to meet its customers’ diverse needs with a dual-chemistry approach. The company aims for carbon neutrality by 2038, focusing on reducing emissions across all scopes through innovative solutions.