Stellantis worker at work inside of the new Hybrid and PHEV Vehicles Stellantis Group eDCT Assembly Plant on April 10, 2024 in Turin, Italy.
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Automaker Stellantis and Chinese battery giant CATL on Tuesday announced plans to jointly build a 4.1 billion euro ($4.3 billion), large-scale lithium iron phosphate (LFP) battery plant in Spain.
The 50-50 joint venture could reach up to 50 gigawatt hours, subject to the evolution of the market for electric vehicles in Europe and requisite government support.
The facility will be built at Stellantis’ Zaragoza site in northeastern Spain and is expected to be up and running by the end of 2026.
Dodge maker Stellantis said the plant will boost the car giant’s “best-in-class” LFP credentials in Europe, enabling the company to make more high-quality and affordable battery-electric passenger cars and SUVs.
It comes at a time when Europe’s automakers are facing a perfect storm of challenges on the road to full electrification, including a lack of affordable models, a slower-than-anticipated rollout of charging points and the prospect of targeted U.S. tariffs.
“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,” Stellantis Chairman John Elkann said in a statement.
Elkann also thanked Spanish authorities for their support.
Shares of Milan-listed Stellantis traded 0.2% higher on Tuesday morning. The stock price has plummeted more than 38% year-to-date.
A high power LFP battery cell on display at the Contemporary Amperex Technology Co. Ltd. (CATL) booth at the IAA Transportation fair in Hannover, Germany, on Monday, Sept. 16, 2024. The commercial vehicle exhibition runs until Sept. 22.
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Stellantis and CATL, one of the world’s biggest battery producers, signed a non-binding memorandum of understanding in November last year for the local supply of LFP battery cells and modules for electric vehicle production in Europe.
“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,” Robin Zeng, CEO and chairman of CATL, said in a statement.
“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,” he added.