Stellantis, one of the world’s leading automakers aiming to provide clean, safe, and affordable freedom of mobility to all, and battery technology leader CATL have announced a major joint venture. They will build a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. This significant investment totals up to €4.1 billion ($4.4 billion). It represents a 50-50 partnership. This move is a significant step toward Stellantis’ “Dare Forward 2030″ strategic plan. This plan aims for carbon net zero status by 2038, with single-digit percentage compensation of remaining emissions.
A €4.1 Billion Investment and Strategic Collaboration
The new facility will be located at Stellantis’ existing Zaragoza site. Production is targeted to begin by the end of 2026. The plant’s implementation will occur in several phases with different investment plans. Subsequently, its final capacity, up to 50 GWh, depends on the evolution of the European EV market. It also depends on continued support from Spanish and EU authorities. This collaboration focuses on producing LFP batteries. These batteries will enable Stellantis to offer more high-quality, durable, and affordable battery-electric passenger cars, crossovers, and SUVs. These vehicles will be in the B and C segments and offer intermediate ranges. This joint venture builds upon a non-binding MOU. Stellantis and CATL signed it in November 2023 for the local supply of LFP battery cells and modules for EV production in Europe. Furthermore, it establishes a long-term collaboration on two strategic fronts: creating a technology roadmap to support Stellantis’ advanced BEVs and identifying opportunities to further strengthen the battery value chain.
Dual-Chemistry Approach and CATL’s European Expansion
This joint venture emphasizes Stellantis’ use of a dual-chemistry approach. This approach uses both lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) chemistries. This serves all customers and allows Stellantis to explore innovative battery cell and pack technologies. CATL is bringing its state-of-the-art battery manufacturing technology to Europe. They already have plants in Germany and Hungary. The Spanish facility will further enhance their capabilities. It will support customer climate goals. Additionally, it will underscore their commitment to advancing e-mobility and energy transition efforts in Europe and the global market. LFP batteries offer key advantages. These include cost-effectiveness, enhanced durability, and an extended lifespan. Consequently, these advantages make them a compelling option for specific vehicle segments.
The Impact on the EV Market and Sustainability
The establishment of this new LFP battery plant is crucial for expanding battery production infrastructure. This infrastructure is needed to support the rapidly growing EV market. Increased battery availability will likely contribute to lower EV prices. It will also contribute to the development of longer-range vehicles. These are key factors accelerating EV adoption in Europe and globally. Moreover, CATL announced its strategic goals. These are achieving carbon neutrality in core operations by 2025 and across the battery supply chain by 2035. This aligns with the EV industry’s broader sustainability goals. Therefore, it is relevant to EV Charging Magazine’s focus on environmentally conscious transportation, as battery production and lifecycle are intrinsically linked to the sustainability of EV charging infrastructure.
Quotes from Key Players:
- Stellantis Chairman John Elkann: “Stellantis is committed to a decarbonized future. We are embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers. 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. This will help 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.”
- CATL Chairman and CEO Robin Zeng: “The joint venture has taken our cooperation with Stellantis to new heights. I believe our cutting-edge battery technology and outstanding operation knowhow, combined with Stellantis’ decades-long experience in running business locally in Zaragoza, will ensure a major success story in the industry. CATL’s goal is to make zero-carbon technology accessible across the globe. We look forward to cooperating with our partners globally through more innovative cooperation models.”
