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.

The European Investment Bank (EIB) has announced a €20 million venture debt loan for Tau Group, an Italian technology startup pioneering advancements in transport electrification. The InvestEU grant will help enhance the company’s production of high-performance magnet wire, which is essential for electric motors and the energy transition.

The investment will help Tau Group to grow its production capacity from 2,000 tons to 12,000 tons each year by 2027. Tau Group will upgrade its Turin plant, significantly advancing sustainability and efficiency in electric motor manufacturing and the broader industry.

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DryCycle Technology to Replace Polluting Processes

Tau Group’s patented DryCycle process is at the core of its innovative approach. DryCycle replaces traditional solvent-based wire enameling with a single-step process using advanced polymers, eliminating harmful solvents and multi-stage evaporation. The innovation eliminates solvents, lowers energy use, and minimizes waste, creating high-performance magnet wire that is environmentally friendly.

The shift promises both environmental benefits and cost efficiency, enabling Tau Group to produce both sustainable and economical wires. This breakthrough technology will accelerate advancements in electric vehicles and other electrical machinery, reinforcing Europe’s commitment to the energy transition.

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Supporting Rapidly Growing Innovation

Alessandro Izzo, EIB Director of Equity, Growth, and Project Finance said, “Electrifying the car manufacturing industry and ensuring its production efficiency is fundamental, not only to step up the fight against climate change, but also to reinforce Europe’s competitiveness.”

He added, “EIB financing aims to create a more efficient and sustainable manufacturing industry that is ready to face the challenges of the future.”

The EIB’s venture debt loan provides flexible financing for fast-growing, innovative companies. With over €6 billion invested in 200 projects since 2015, it holds Europe’s largest venture debt portfolio.