Stellantis And CATL Teams Up For Mass-Scale LFP Battery Production

Automaking giants Stellantis and battery makers CATL have announced a joint venture where both are investing up to €4.1 Billion (RM19 Billion) to construct a large-scale lithium iron phosphate (LFP) battery plant situated in Zaragoza, Spain.

The facility, designed to be carbon neutral, will begin production by late 2026 and could reach a 50 GWh capacity, depending on market evolution and support from Spanish and EU authorities.

This 50-50 partnership will strengthen Stellantis’ LFP battery offerings in Europe, enabling the production of affordable, durable battery-electric vehicles (BEVs) in the B and C segments, including passenger cars, crossovers, and SUVs.

The project builds on a 2023 memorandum of understanding (MOU) between the companies to localize LFP battery production and develop advanced BEV technologies.

Stellantis Chairman John Elkann emphasised the initiative's alignment with the company’s 2038 carbon-neutral goal, highlighting Zaragoza’s renewable energy resources and the project's sustainability.

CATL, leveraging its experience from existing plants in Germany and Hungary, aims to support Europe’s energy transition and expand its global footprint in e-mobility. The joint venture reflects Stellantis’ dual-chemistry strategy, combining LFP and nickel manganese cobalt (NMC) batteries to address diverse customer needs.

Regulatory approval is expected by 2025, marking a significant step in transforming Europe’s electric vehicle market while advancing sustainable mobility and innovation.