BREAKING: Stellantis and CATL Join Forces for €4.1 Billion LFP Battery Plant Venture
Forex - Stellantis, one of the world's largest mobility companies, and CATL, a leading battery manufacturer, have announced an agreement to invest up to €4.1 billion to establish a joint venture for a large-scale lithium iron phosphate (LFP) battery factory in Europe. The battery facility will be designed to be fully carbon neutral and will be implemented in several phases with investment plans.
Reducing costs for B and C segment vehicles! The facility aims to begin production at Stellantis' factory in Zaragoza, Spain, by the end of 2026. The capacity of the facility could reach up to 50 GWh depending on the development of the electric vehicle market in Europe and the support from Spanish and European Union authorities. The 50-50 joint venture between CATL and Stellantis will develop class-leading LFP solutions in Europe and enable the automaker to offer high-quality, durable, and affordable mid-range battery electric passenger cars, crossovers, and SUVs. In November 2023, Stellantis and CATL signed a non-binding Memorandum of Understanding for the local supply of LFP battery cells and modules for electric vehicle production in Europe. Thus, the two companies established a long-term partnership in two strategic areas. This collaboration aims to create an ambitious technology roadmap to support Stellantis' advanced battery electric vehicles (BEVs) and identify opportunities to further strengthen the battery value chain.
This move marks a new peak of strong collaboration! In a statement, Stellantis Chairman John Elkann said, “As Stellantis, we are committed to a carbon-free future by leveraging all available advanced battery technologies to provide our customers with competitive electric vehicles. This joint venture with our partner CATL will help adopt a 360-degree sustainable approach by adding innovative battery production to a manufacturing facility that is already a leader in clean and renewable energy. I want to thank all stakeholders who contribute to the realization of this initiative for their ongoing support, including Spanish authorities.” Addressing the collaboration's elevation to new heights, CATL Chairman and CEO Robin Zeng stated, “I believe that the combination of our highly advanced battery technology and superior operational expertise with Stellantis' decades of local experience in Zaragoza will create a great success story in the industry. CATL's goal is to make zero-carbon technology globally accessible, and we eagerly look forward to collaborating with our partners through more innovative business models.”
The transaction will be completed in 2025! With its two existing facilities in Germany and Hungary providing the latest battery production technology to Europe, CATL's facility in Spain will further enhance customers' ability to support climate goals. Additionally, this initiative underscores the brand's commitment to supporting electric mobility and energy transition efforts in Europe and global markets. Stellantis follows a dual chemistry approach with lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) to meet all customer requirements and explores innovative battery cell and pack technologies. Stellantis is on track to become a net-zero carbon company with single-digit percentage compensation for remaining emissions across all scopes by 2038. The completion of this transaction is expected in 2025.