Stellantis and CATL partner on €4.1B LFP battery plant in Spain
January 14, 2025

Stellantis and CATL, a Chinese battery manufacturer based in Fujian, have reached an agreement to invest up to €4.1 billion in a joint venture to build a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The battery plant, designed to be carbon neutral, will be implemented in several phases and investment stages.
Production is targeted to begin by the end of 2026 at Stellantis’ Zaragoza, Spain site. The facility could reach up to 50 GWh capacity, depending on Europe’s electrical market evolution and continued support from Spanish and EU authorities. Through this 50-50 joint venture, CATL and Stellantis will enhance Stellantis’ leading LFP offerings in Europe. This will enable the automaker to offer more high-quality, durable and affordable battery-electric passenger cars, crossovers and SUVs in the B and C segments with intermediate ranges.
In November 2023, Stellantis and CATL signed a non-binding MOU for the local supply of LFP battery cells and modules for electric vehicle production in Europe and established a long-term collaboration on two strategic fronts: creating a bold technology roadmap to support Stellantis’ advanced Battery Electric Vehicles (BEV) and identifying opportunities to further strengthen the battery value chain.
Stellantis Chairman John Elkann, shared, “Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers.”
“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. I want to thank all stakeholders involved in making today’s announcement a reality, including the Spanish authorities for their continued support,” Elkann continued.
Robin Zeng, Chairman and CEO of CATL, stated, “The joint venture has taken our cooperation with Stellantis to new heights, and 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.”
“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,” Zeng added.
CATL is working to bring state-of-the-art battery manufacturing technology to Europe through its two plants in Germany and Hungary, which are already operational. The Spanish facility will enhance its capabilities to support customers’ climate goals, further underscoring its commitment to advancing e-mobility and energy transition efforts in Europe and the global market.
Stellantis is employing a dual-chemistry approach – lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) – to serve all customers and exploring innovative battery cell and pack technologies. Stellantis is on track to becoming a carbon net zero corporation by 2038, all scopes included, with single-digit percentage compensation of remaining emissions.
The transaction is expected to close in the course of 2025 and is subject to customary regulatory conditions.