Multinational auto giant Stellantis and Chinese battery manufacturer CATL have announced a joint venture to build a new battery plant in Zaragoza, Spain. According to Stellantis’s statement, the two companies will come together to build a large-scale lithium iron phosphate (LFP) battery plant, with a combined investment of €4.1 billion. The plant, which is expected to start manufacturing by the end of 2026, will have a target capacity of up to 50 GWh annually. Stellantis stated that the plant will be designed to be completely carbon neutral and that it will be implemented in several phases and investment plans.
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Stellantis signed a memorandum of understanding (MOU) with CATL in 2023, to collaborate with the Chinese company for the supply of LFP battery cells and modules to support Stellantis’ electric vehicle manufacturing in Europe. This partnership was forged due to Stellantis’ aim to provide durable and cost-effective electric vehicles, particularly in the B and C passenger vehicle segments, which include crossovers and SUVs.
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This 50-50 joint venture between the two companies to build the battery plant is in line with Stellantis’s Dare Forward 2030 plan. As per the plan, by 2030, the manufacturer aims to sell only battery-electric passenger vehicles in Europe while in the United States, it aims for 50 per cent of its sales to come from BEVs. Stellantis also has plans to become a carbon net zero corporation by 2038.
