Stellantis & CATL Boost EV Manufacturing Capacity

Despite recent high-profile challenges, Stellantis continues to uphold its strategic commitments to EV manufacturing. 

Stellantis and CATL have announced an ambitious investment of up to US$4.43bn in a joint venture to create a top-tier lithium iron phosphate (LFP) battery factory in Zaragoza, Spain.

This facility, earmarked to commence production by the end of 2026, is expected to significantly impact the European EV market, boasting a production capacity of up to 50 GWh.

Supporting Stellantis' strategic vision

Stellantis, renowned for its pioneering work in automotive innovation, is capitalising on this partnership to enhance its ability to deliver affordable and eco-friendly electric mobility.

Underpinning this initiative is Stellantis's Dare Forward 2030 strategy, where the manufacturer seeks to morph into a carbon net-zero mobility tech company by 2038.

The company's audacious plan is supported by investments in leading-edge battery technologies, notably its dual-chemistry strategy encompassing lithium-ion nickel manganese cobalt (NMC) and LFP batteries.

Contemporary Amperex Technology Co., Limited (CATL), a beacon in the energy technology sphere, brings its advanced battery manufacturing prowess to the partnership.

With facilities already functioning in Germany and Hungary, CATL is celebrated as the foremost EV battery provider globally.

CATL's commitment to achieving carbon neutrality by 2025 for its core operations—and by 2035 across its supply chain—underscores its critical role in the energy transition.

“Stellantis is committed to a decarbonised future, embracing all available advanced battery technologies to bring competitive EV products to our customers," says John Elkann, Chairman of Stellantis.

“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.”

Advancing EV manufacturing

The planned Zaragoza factory will empower Stellantis to augment its selection of robust, cost-effective battery-electric vehicles (BEVs) within the B and C segments.

This includes passenger vehicles, crossovers and SUVs aimed at mid-range travel distances.

The development aligns with Stellantis' strategy to enhance the accessibility of sustainable EVs to a broader consumer base, ensuring it can meet the escalating manufacturing demand for EVs throughout Europe.

Crucially, the facility is designed to operate in a completely carbon-neutral manner, reflecting the strong commitment to sustainability that both companies share.

The project has garnered substantial support from Spanish authorities and the European Union, who view it as a pivotal step towards achieving their climate objectives.

“The joint venture has taken our cooperation with Stellantis to new heights," says Robin Zeng, Chairman and CEO of CATL.

“I believe our cutting-edge battery technology and outstanding operational know-how, combined with Stellantis’ decades-long experience in running business locally in Zaragoza, will ensure a major success story in the industry.

"CATL’s goal is to make zero-carbon technology accessible across the globe.”

An industry milestone

Building upon the non-binding memorandum of understanding (MOU) inked by Stellantis and CATL in November 2023, this partnership is a testament to their extended collaboration aimed at crafting an audacious technological roadmap for Stellantis’s advanced BEVs and enhancing the battery value chain within Europe.

Anticipated to conclude in 2025, subject to regulatory approvals, the venture merges Stellantis’ expertise in auto manufacturing with CATL’s leadership in battery innovation.

Hence, the Zaragoza plant marks a significant advancement in the EV industry.

By uniting their strengths, Stellantis and CATL are setting a robust example of how collaborative efforts can propel the worldwide agenda towards carbon neutrality and technological innovation in sustainable mobility.

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