Stellantis and CATL to Build €4.1B, 50 GWh LFP Battery Plant in Spain by 2026

Dec 10, 2024, 08:39 AM

Stellantis and China's CATL have announced a 50-50 joint venture to invest up to €4.1 billion ($4.33 billion) in building a large-scale lithium iron phosphate (LFP) electric vehicle battery plant in Zaragoza, Spain. The facility, expected to be the largest battery factory in Spain, will have a production capacity of up to 50 GWh per year and is anticipated to start production by the end of 2026. The transaction is set to be completed within 2025. This investment aims to strengthen Stellantis's supply chain for electric vehicle batteries and avoid tariffs on batteries, as CATL is a Chinese battery manufacturer with significant market control. Spanish Prime Minister Pedro Sánchez has discussed the gigafactory project with CATL, highlighting the strategic importance of the investment for Spain's electric vehicle industry.