On December 10, 2024, CATL and Stellantis Group jointly announced that they will establish a joint venture with a 50-50 ownership stake to build a large-scale lithium iron phosphate (LFP) battery factory in Zaragoza, Spain, with an investment of up to €4.1 billion. The factory is scheduled to commence production by the end of 2026, with a planned annual production capacity of 50 gigawatt-hours (GWh). Additionally, the factory will be designed to meet full carbon neutrality standards, and the investment plan is currently progressing steadily.
The establishment of this joint venture will enhance Stellantis Group's advanced position in LFP batteries in Europe, supporting its continued efforts in the B-segment and C-segment car markets, and providing consumers with higher-quality, more durable, and more affordable electric sedans, crossovers, and SUVs.
Stellantis Group, one of the world's leading automakers, aims to provide environmentally friendly, safe, and economical transportation solutions. In November 2023, Stellantis Group and CATL signed a non-binding memorandum of understanding to serve Stellantis electric vehicle manufacturing in Europe by providing localized LFP battery cells and modules. At the same time, both parties announced a long-term cooperation in two strategic directions: first, to develop an ambitious technology roadmap to support the development of Stellantis advanced pure electric vehicles; second, to actively explore new cooperation opportunities to further enhance the battery value chain.
John Elkann, Chairman of the Board and Interim Executive Committee Chairman of Stellantis Group, stated, "We are committed to achieving a carbon-neutral future and embracing all available advanced battery technologies to bring competitive electric vehicle products to consumers. This joint venture with CATL will introduce innovative battery production to the park, which has already become an advanced demonstration manufacturing base for the use of clean and renewable energy, contributing to the promotion of sustainable production methods."
Zeng Yuqun, Chairman and CEO of CATL, said, "This cooperation elevates our partnership with Stellantis Group to a new height. I believe that with CATL's advanced battery technology and excellent operational expertise, combined with Stellantis Group's decades of localized business operation experience in Zaragoza, this project will become a significant success story in the industry. CATL's goal is to promote zero-carbon technologies globally, and we look forward to collaborating with global partners through more innovative models."
CATL has already opened two factories in Germany and Hungary, bringing advanced battery manufacturing technology to Europe. The announced Spanish factory will further enhance CATL's technical capabilities in supporting clients to achieve their climate goals and accelerate the transition to electric mobility and energy transformation in Europe and the global market.
