Stellantis and Contemporary Amperex Technology Co., Limited (CATL) have announced an ambitious €4.1 billion joint venture to build an exceptional lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. This facility will be setting a milestone for Europe’s EV ecosystem and will simultaneously support Stellantis’ Dare Forward 2030 strategy and CATL’s mission to advance global e-mobility.
Let’s deep dive into their plans…
Stellantis and CATL Join Forces for EV Affordability
This JV is an extension of the non-binding memorandum of understanding (MOU) signed by Stellantis and CATL in November 2023. The document outlined a roadmap for integrating Stellantis’ advanced battery electric vehicles (BEV) and exploring opportunities to bolster their battery value chain. It also gave a push to the local production of LFP battery cells and modules for EVs in Europe.
Significantly, Spanish and European Union authorities are supporting this project while recognizing its potential to boost Europe’s energy independence and drive economic growth.
The companies revealed that the planned facility will have a production capacity of up to 50 GWh, with operations expected to commence by the end of 2026. By leveraging advanced LFP technology, Stellantis aims to deliver more affordable and durable electric vehicles across Europe, catering to B and C-segment passenger cars, crossovers, and SUVs.
Notably, the transaction is expected to close by 2025 and is pending regulatory approvals.
Stellantis Dual-Chemistry Strategy: NMC and LFP
This move aligns with Stellantis’ dual-chemistry strategy, which includes both lithium-ion nickel manganese cobalt (NMC) and LFP batteries.
Stellantis will incorporate a dual-chemistry strategy which means both lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) will be available to customers. This gives more choices to customers for their battery cell and pack technologies.
Commitment to Decarbonization
Stellantis has pledged to achieve carbon net zero by 2038 across all operations, with minimal residual emissions offset by single-digit percentage compensation.
The Zaragoza plant will be fully carbon neutral, reinforcing Stellantis’ and CATL’s dedication to global climate goals. CATL’s experience in battery manufacturing, demonstrated by its operational plants in Germany and Hungary, will ensure the new facility delivers top-tier products while supporting a sustainable energy transition in Europe.
A Holistic Approach to Climate Change
Stellantis Chairman John Elkann said,
“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.”
Advancing E-Mobility: CATL’s Commitment to Innovation
Robin Zeng, Chairman and CEO of CATL said,
“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. 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.”
CATL’s upcoming battery plant in Spain will be an add-on to its existing facilities in Germany and Hungary. These operations have made CATL a global leader in battery innovation, with the company consistently topping in EV battery usage and energy storage shipments worldwide.
By extending its cutting-edge manufacturing expertise in Spain, CATL is once again showcasing its dedication to advancing e-mobility and supporting the energy transition across Europe and globally.
Furthermore, the newly launched affordable EVs will also help customers achieve their climate targets.
Net-Zero Commitment
CATL’s strategic goals include achieving carbon neutrality in core operations by 2025 and across its supply chain by 2035. Subsequently, the Zaragoza plant will play a key role in these objectives with its advanced solutions to meet the growing demand for sustainable energy storage.
Greenhouse Gas Emissions within the Organizational Boundary in 2023
Source: CATL
By 2026, this landmark project will mark a new era in Europe’s sluggish EV market. Stellantis and CATL both are confident in delivering cost-effective battery solutions and supporting the continent’s automotive and energy industries.