Stellantis and CATL Announce €4.1 Billion Battery Plant in Spain
Automotive giant Stellantis and Chinese battery manufacturer CATL have announced a strategic joint venture to construct a new lithium iron phosphate (LFP) battery production facility in Zaragoza, Spain. The plant, representing a total investment of €4.1 billion ($4.3 billion), is designed to produce up to 50 gigawatt-hours of batteries annually. These LFP batteries are intended for lower-cost passenger vehicles in the B and C segments, offering intermediate driving ranges. The first phase of operations is scheduled to commence by the end of 2026, with the deal expected to close in 2025 pending regulatory approvals. This initiative marks CATL’s third production base in Europe, following facilities in Germany and Hungary. The Spanish government will support the project with a €133 million contribution. By utilizing cost-effective LFP technology rather than more expensive nickel cobalt manganese variants, the partnership aims to enhance the affordability of electric vehicles in the European market. This development underscores the growing collaboration between European automakers and Asian battery suppliers to secure supply chains and meet rising demand for sustainable transportation solutions within the region.
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Stellantis and CATL Announce €4.1 Billion Battery Plant in Spain
Automotive giant Stellantis and Chinese battery manufacturer CATL have announced a strategic joint venture to construct a new lithium iron phosphate (LFP) battery production facility in Zaragoza, Spain. The plant, representing a total investment of €4.1 billion ($4.3 billion), is designed to produce up to 50 gigawatt-hours of batteries annually. These LFP batteries are intended for lower-cost passenger vehicles in the B and C segments, offering intermediate driving ranges. The first phase of operations is scheduled to commence by the end of 2026, with the deal expected to close in 2025 pending regulatory approvals. This initiative marks CATL’s third production base in Europe, following facilities in Germany and Hungary. The Spanish government will support the project with a €133 million contribution. By utilizing cost-effective LFP technology rather than more expensive nickel cobalt manganese variants, the partnership aims to enhance the affordability of electric vehicles in the European market. This development underscores the growing collaboration between European automakers and Asian battery suppliers to secure supply chains and meet rising demand for sustainable transportation solutions within the region.
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