Stellantis, CATL enter EUR 4.1B joint venture for LFP battery plant in Spain

Stellantis (STLA) and CATL announced they have reached an agreement to invest up to EUR 4.1B to form a joint venture that will build a large-scale European lithium iron phosphate, or LFP, battery plant in Zaragoza, Spain. Designed to be completely carbon neutral, the battery plant will be implemented in several phases and investment plans. Targeted to start production by end of 2026 at Stellantis’ Zaragoza, Spain site, the facility could reach up to 50 GWh capacity, subject to the evolution of the electrical market in Europe and continued support from authorities in Spain and the European Union. The 50-50 joint venture between CATL and Stellantis will boost Stellantis’ LFP offer in Europe enabling the automaker to offer more battery-electric passenger cars, crossovers and SUVs in the B and C segments with intermediate ranges. In November 2023, Stellantis and CATL signed a non-binding MOU for the local supply of LFP battery cells and modules for electric vehicle production in Europe and established a long-term collaboration on two strategic fronts: creating a bold technology roadmap to support Stellantis’ advanced battery electric vehicles and identifying opportunities to further strengthen the battery value chain. The transaction is expected to close in the course of 2025 and is subject to customary regulatory conditions.