Beijing (Gasgoo)- Stellantis and Contemporary Amperex Technology Co., Ltd. (CATL) announced on December 10 their agreement to invest up to €4.1 billion in a joint venture to build a large lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.
Designed to operate under a carbon-neutral framework, the facility is set to begin production at the Stellantis manufacturing site in Zaragoza by late 2026. It will have an annual output of up to 50 GWh, contingent on the growth of Europe's electric vehicle (EV) market and continued support from the Spanish government and the EU.
The 50-50 joint venture aims to bolster Stellantis' competitive edge in Europe by enhancing its LFP battery offerings. These batteries will power mid-range B- and C-segment cars, crossovers, and SUVs with improved durability and cost-efficiency.
Subject to customary regulatory approvals, the transaction is expected to be closed by 2025.
This partnership builds on a non-binding memorandum of understanding signed in November 2023, which outlined local LFP battery cell and module supply for Stellantis' European EV production. The collaboration also includes a roadmap for advanced EV technologies and exploration of new opportunities in the battery value chain.
With CATL's plants in Germany and Hungary already operational, this new factory reinforces the Chinese battery giant's commitment to advancing Europe's energy transition and supporting global e-mobility goals.
