Stellantis and CATL have announced a joint venture agreement to invest up to €4.1 billion in building a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The facility, designed to be fully carbon neutral, will be developed in phases with targeted production beginning by the end of 2026.
The plant, located at Stellantis’ Zaragoza site, could have a capacity of up to 50 GWh, depending on the development of the European electric market and continued support from Spanish and EU authorities. The 50-50 partnership will enhance Stellantis’ LFP battery offerings in Europe, enabling the production of high-quality, durable, and affordable electric vehicles (EVs) in the B and C segments, including passenger cars, crossovers, and SUVs with intermediate ranges.
This collaboration follows a non-binding MOU signed in November 2023 between Stellantis and CATL for the local supply of LFP battery cells and modules for EVs in Europe. It focuses on creating a technology roadmap to support Stellantis’ advanced battery electric vehicles (BEVs) and further strengthening the battery value chain. The transaction is expected to close in 2025, pending customary regulatory approvals. “Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers,” said Stellantis Chairman John Elkann. “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,” said 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.”
