Motor vehicle manufacturer Stellantis and new technology specialist Contemporary Amperex Technology Limited (CATL) have agreed to jointly invest 4.1 billion euros to create a company that will in turn build a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza.

The new mega-factory will be installed in the plant that the manufacturer has in the Aragonese capital for brands like Citroën, Opel, Peugeot, Fiat, Alfa Romeo and Chrysler. The implementation will be undertaken in several steps,  with the investment plans being spread over several phases. The factory, which will be designed to be completely carbon neutral, is scheduled to start production by the end of 2026 and could reach a capacity of up to 50 gigawatt hours, depending on the needs of the electricity market in Europe and institutional support from Spain and the European Union.

Longer lasting and more affordable batteries
This company is expected to be created by 2025, once it has passed the usual regulatory conditions. As a 50/50 joint venture between the European and Chinese companies, the plan is for it to boost Stellantis' LFP offering in Europe. In this way, Stellantis will be able to produce more electric vehicles with more durable and affordable batteries.

CATL's state-of-the-art battery manufacturing technology is already present in Europe through its two plants in Germany and Hungary. The two partners signed a first non-binding memorandum of understanding in November 2023. The objective of this was to explore collaboration for the local supply of LFP battery cells and modules for electric vehicle production in Europe. It did in turn aim to create a technology roadmap to support Stellantis' advanced battery electric vehicles (BEVs) and identify opportunities to further strengthen the battery value chain.

Innovative production
Stellantis Chairman John Elkann said his company is “committed to a decarbonised future, embracing all available advanced battery technologies to deliver competitive electric vehicle products to our customers,” adding, “This important joint venture with our partner CATL will bring innovative battery production to a manufacturing facility that is already a leader in clean and renewable energy, helping to drive a 360-degree sustainable approach.”

CATL's Chairman and CEO, Robin Zeng, believes that the Chinese company's battery technology and operational know-how, “combined with Stellantis' decades of experience in running local businesses in Zaragoza, will ensure a significant success story in the industry”. He went on to elaborate further, “CATL's goal is to make zero carbon technology accessible worldwide, and we look forward to cooperating with our partners globally through more innovative cooperation models”.

^{Photo: Stellantis}