218 / 5,000 LFP battery plant in Zaragoza: Stellantis and CATL will invest 4.1 billion euros.

Stellantis and CATL have announced a joint venture to develop a large-scale LFP (lithium iron phosphate) battery plant at Stellantis’ plant in Zaragoza, Spain. With an estimated investment of €4.1 billion, production will begin by the end of 2026 and will have a capacity of up to 50 GWh.

This project is part of both companies’ commitment to decarbonisation and the expansion of electromobility in Europe. The alliance seeks to boost the battery value chain on the continent and support the development of competitive electric vehicles.

Strategic collaboration and objectives
In November 2023, Stellantis and CATL signed a memorandum of understanding that set the foundations for their collaboration. Key objectives include:

1. Local battery production: Ensure the supply of LFP battery cells and modules in Europe for Stellantis’ growing demand for electric vehicles.
2. Technology transfer: CATL will provide cutting-edge technology, consolidating its presence in Europe, where it already operates plants in Germany and Hungary.
3. Technology roadmap: Both companies will work on developing innovative solutions for battery electric vehicles (BEV).

According to John Elkann, President of Stellantis, this plant will not only increase battery production capacity, but will be developed in a facility that already stands out for its clean and renewable energy, contributing to sustainable mobility with a low environmental impact.

Support from the Spanish government
The project has the backing of the Spanish authorities, who have supported strategic initiatives that promote electrification and foreign investment in the country. Zaragoza, a key location in Stellantis production, will benefit from an economic boost and the creation of new jobs.

A boost to European electromobility
With this plant, Stellantis reinforces its ambition to become a leader in electric mobility, while CATL consolidates its position as a leading supplier of battery technology worldwide.

The production of LFP batteries will enable Stellantis to offer more affordable and long-lasting electric vehicles, thanks to the advantages of this technology, such as its greater thermal safety and lower cost compared to NCM (nickel-cobalt-manganese) batteries.

This agreement marks a milestone in the European automotive industry, combining Stellantis' expertise in vehicle manufacturing with CATL's advanced battery technology. With a capacity of up to 50 GWh, this plant will significantly contribute to the energy transition of the sector and to achieving zero-emissions goals in Europe.