Stellantis & CATL to Invest up to €4.1 Billion in Joint Venture for EV Battery Plant in Spain

Stellantis and CATL are to invest up to €4.1 billion to form a joint venture (JV) that will build a large-scale European lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The battery plant will be implemented in several phases and investment plans.

The JV is targeted to start production by end of 2026 at Stellantis’ plant in Zaragoza, Spain.

The facility could reach up to 50 GWh capacity, subject to the evolution of the electrical market in Europe and continued support from authorities in Spain and the European Union.

The 50-50 JV will boost Stellantis’ LFP offer in Europe enabling the automaker to offer more high-quality, durable and affordable battery-electric passenger cars, crossovers and SUVs in the B and C segments with intermediate ranges.

In November 2023, Stellantis and CATL signed a non-binding memorandum of understanding (MOU) for the local supply of LFP battery cells and modules for electric vehicle production in Europe and established a long-term collaboration.

CATL is bringing battery manufacturing technology to Europe through its two plants in Germany and Hungary, which are already operational. 

Stellantis Chairman, John Elkann, says: “Stellantis is committed to a decarbonized future, 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, 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.”

“The joint venture has taken our cooperation with Stellantis to new heights, and 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,” adds Robin Zeng, Chairman and CEO of CATL. “CATL’s goal is to make zero-carbon technology accessible across the globe, and we look forward to cooperating with our partners globally through more innovative cooperation models.”

Stellantis is on track to becoming a carbon net zero corporation by 2038.