Stellantis and Chinese battery manufacturer CATL have announced a €4.1 billion investment to establish a battery factory in Zaragoza, Spain. This joint venture, owned equally by both companies, aims to produce lithium iron phosphate (LFP) batteries.
Production is expected to commence by the end of 2026, with a potential capacity of up to 50 GWh, contingent on market conditions and support from European and Spanish authorities.
The factory is designed to be fully carbon-neutral and will be developed in phases. This initiative reinforces Stellantis' supply of LFP batteries for electric vehicle production in Europe, following a strategic agreement signed in November 2023.
The decision highlights Spain's significant role in the automotive sector, which saw the assembly of 1.87 million vehicles in 2023, making it the second-largest producer in Europe.