- Stellantis and CATL are investing €4.1 billion to build an LFP battery plant in Zaragoza, Spain, starting production by late 2026.
- The plant will focus on reducing EV costs, supporting Stellantis’ Dare Forward 2030 strategy to make affordable EVs for the B and C segments.
- CATL’s advanced battery technology will enhance Europe’s EV supply chain, making EVs more accessible while promoting sustainability.
Stellantis and CATL are building a new battery plant to make EVs cheaper for European drivers
Stellantis and CATL are teaming up to make electric vehicles (EVs) more affordable in Europe. The two companies announced plans to build a €4.1 billion lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The facility is set to start production by late 2026, with a potential capacity of up to 50 GWh.
Stellantis Chairman, John Elkann, commented:
“Stellantis is committed to a decarbonised future, embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers. This important joint venture with our partner CATL will bring innovative battery production to a manufacturing site that is already a leader in clean and renewable energy, helping drive a 360-degree sustainable approach. I want to thank all stakeholders involved in making today’s announcement a reality, including the Spanish authorities for their continued support.”
This joint venture is part of Stellantis’ Dare Forward 2030 strategy. The automaker aims to bring more cost-effective EVs to the market, especially in the B and C segments. These segments include popular passenger cars, crossovers, and SUVs with intermediate ranges, designed to appeal to everyday drivers.
LFP batteries are key to reducing costs while maintaining durability and quality. By adopting this technology, Stellantis can lower production expenses, making EVs accessible to more customers. This news follows a recent $7.54 billion loan to support the group’s US EV production.
Chairman and CEO of CATL, Robin Zeng, stated:
“The joint venture has taken our cooperation with Stellantis to new heights, and I believe our cutting-edge battery technology and outstanding operation knowhow combined with Stellantis’ decades-long experience in running business locally in Zaragoza will ensure a major success story in the industry. CATL’s goal is to make zero-carbon technology accessible across the globe, and we look forward to cooperating with our partners globally through more innovative cooperation models.”
This plant will enhance Europe’s EV supply chain, driving down costs for European models. By pooling resources, the partnership is making EV ownership a realistic choice for more drivers. The project will close in 2025, pending regulatory approval.
