Stellantis and CATL have entered a €4.1 billion joint venture to build a carbon-neutral lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.
The facility aims to start production by the end of 2026, with a potential capacity of up to 50 GWh, depending on the European electrical market and regulatory support.
This partnership will enhance Stellantis' LFP offerings, allowing for the production of high-quality, durable battery-electric vehicles in the B and C segments.
In November 2023, the companies signed a non-binding MOU for local LFP battery cell supply, focusing on a technology roadmap for advanced battery electric vehicles and strengthening the battery value chain.
Stellantis is pursuing a dual-chemistry strategy with lithium-ion nickel manganese cobalt (NMC) and LFP technologies, aiming for carbon neutrality by 2038. The transaction is expected to close in 2025, pending regulatory approval.