Stellantis and CATL Form Joint Venture for Carbon-Neutral Battery Plant in Spain

Stellantis and CATL have reached a groundbreaking agreement to invest up to 4.1 billion euros to form a 50-50 joint venture (JV) aimed at building a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. This new facility, designed to be completely carbon neutral, will play a key role in advancing Europe’s electric vehicle (EV) market and supporting Stellantis’ ambitious sustainability goals.

The battery plant, which is expected to begin production by the end of 2026, could ultimately reach a production capacity of up to 50 GWh, depending on the evolution of the electrical market in Europe and continued support from authorities in Spain and the European Union (EU). The joint venture will bolster Stellantis’ already impressive LFP offerings, enabling the automotive giant to produce high-quality, durable, and affordable electric vehicles, including passenger cars, crossovers, and SUVs in the B and C segments with intermediate ranges.

This move is part of a broader strategic collaboration between Stellantis and CATL. In November 2023, the two companies signed a non-binding Memorandum of Understanding (MoU) to establish a local supply chain for LFP battery cells and modules for EV production in Europe. The partnership will also focus on creating a technology roadmap to support Stellantis’ advanced battery electric vehicles (BEVs) and exploring ways to further strengthen the battery value chain.

John Elkann, Chairman of Stellantis, emphasized the company’s commitment to a decarbonized future, highlighting the importance of the joint venture with CATL. “This important collaboration will bring innovative battery production to a manufacturing site already recognized for its leadership in clean and renewable energy. It’s a crucial step in driving our 360-degree sustainable approach to EV production,” Elkann said. He also expressed gratitude to the Spanish authorities for their continued support.

Robin Zeng, Chairman and CEO of CATL, noted that this joint venture elevates their partnership with Stellantis to new heights. “Our cutting-edge battery technology and operational expertise, combined with Stellantis’ deep local experience, will ensure this facility’s success,” Zeng said. CATL’s existing plants in Germany and Hungary are already operational, and the Zaragoza facility will further bolster its ability to meet the growing demand for sustainable energy solutions in Europe and beyond.

As part of its commitment to advancing e-mobility, Stellantis is adopting a dual-chemistry approach, utilizing both lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) batteries. The company aims to become carbon-neutral by 2038, with the goal of achieving net-zero emissions across all scopes. The deal is expected to close in 2025, pending regulatory approval.

This JV marks a significant step forward in Europe’s transition to electric vehicles and will position both Stellantis and CATL at the forefront of the global e-mobility revolution.