This new battery plant will be built on the Stellantis Zaragoza site in Spain
Stellantis and CATL have announced plans to invest up to €4.1 billion in a joint venture to establish a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. This facility, designed to operate as a carbon-neutral site, will be developed in multiple phases to meet the growing demand for electric vehicle (EV) batteries in Europe.
Production is slated to begin by the end of 2026, with a projected capacity of up to 50 GWh, contingent on market trends and continued support from Spanish and EU authorities.
Moreover, the 50-50 joint venture will enhance Stellantis’ LFP battery offerings in Europe, enabling the production of affordable, high-quality, and durable EVs, including passenger cars, crossovers, and SUVs in the B and C segments. This investment aligns with Stellantis’ strategy to accelerate the transition to battery-electric vehicles (BEVs) and expand its presence in the European market.
In November 2023, Stellantis and CATL signed a non-binding memorandum of understanding (MOU) to establish a long-term partnership. The agreement outlines the local supply of LFP battery cells and modules for EV production in Europe and focuses on creating a robust technology roadmap to support Stellantis’ advanced BEV lineup.
On top of that, both companies aim to identify opportunities to strengthen the battery value chain, ensuring competitive and sustainable solutions.
Stellantis Chairman John Elkann emphasized the company’s commitment to decarbonization and sustainability, stating, “This joint venture with CATL will bring innovative battery production to a manufacturing site that already leads in clean energy, supporting a 360-degree sustainable approach. We appreciate the ongoing support from Spanish authorities in making this project a reality.”
Robin Zeng, Chairman and CEO of CATL, expressed confidence in the collaboration, noting that Stellantis’ extensive local expertise in Zaragoza, combined with CATL’s cutting-edge battery technology, will ensure the success of the venture. Zeng highlighted CATL’s goal of making zero-carbon technology accessible globally and its dedication to supporting energy transition efforts through innovative partnerships.
What’s more, the new Zaragoza facility will complement CATL’s existing operations in Germany and Hungary, further enhancing its manufacturing capabilities in Europe. Stellantis, which employs a dual-chemistry approach with LFP and lithium-ion nickel manganese cobalt (NMC) technologies, is on track to achieving carbon net-zero status by 2038.
The joint venture transaction is expected to close in 2025, pending customary regulatory approvals. This initiative marks a significant step in advancing e-mobility and energy transition efforts across Europe and the global market.
