The umbrella company of many automobile giants Stellantis and battery giant CATL, LFP decided to invest 4.1 billion euros in the battery plant joint venture.
The official statement on this subject was as follows: “Stelntis, one of the world’s largest mobility companies, and CATL, the world’s leading battery manufacturer, announced that they have agreed to invest up to 4.1 billion euros to form a joint venture to establish a large-scale European lithium iron phosphate (LFP) battery factory. The battery plant will be designed to be completely carbon neutral and will be implemented in several stages and investment plans. The facility is aimed to start production at Stellantis’s Zaragoza, Spain factory by the end of 2026. The facility can have a capacity of up to 50 GWh, depending on the development of the electric vehicle market in Europe and the support of Spanish and European Union authorities. The 50-50 joint venture between CATL and Stellantis will develop Stellantis’ best-in-class LFP solutions in Europe and enable the automaker to deliver higher quality, durable and affordable mid-range B and C segment battery electric passenger cars, crossovers and SUVs. . In November 2023, Stellantis and CATL signed a non-binding Memorandum of Understanding for the local supply of LFP battery cells and modules for electric vehicle production in Europe. The two companies thus established a long-term cooperation in two strategic areas. “This collaboration aims to create an ambitious technology roadmap to support Stellantis’ advanced battery electric vehicles (BEV) and identify opportunities to further strengthen the battery value chain.”
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Commenting on the subject Stellantis Chairman John El-kann, “At Stellantis, we are committed to a decarbonised future by using all available advanced battery technologies to deliver competitive electric vehicles to our customers. This joint venture, which we have implemented with our partner CATL, will help adopt a 360-degree sustainable approach by adding innovative battery production to a production facility that is already a leader in clean and renewable energy. “I would like to thank all stakeholders who contributed to the realization of this initiative, including the Spanish authorities, for their continued support.” he said.
He stated that this joint venture took their collaboration with Stellantis to new heights. CATL Chairman and CEO Robin Zeng whereas, “I believe that with our highly advanced battery technology and superior business knowledge, combined with Stellantis’ decades of experience in doing business locally in Zaragoza, we will write a great success story in the industry. CATL’s goal is to make zero carbon technology accessible worldwide, and we look forward to collaborating globally with our partners through more innovative collaboration models.” he said.
The statement continued as follows: “CATL, which provides the most up-to-date battery production technology to Europe with its two currently operating facilities in Germany and Hungary, will further improve customers’ ability to support their climate goals with the facility in Spain. Additionally, with this initiative, the brand further emphasizes its commitment to supporting electric mobility and energy transition efforts in European and global markets.
Stellantis, on the other hand, follows the dual chemistry approach of lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) and explores innovative battery cell and pack technologies to meet all customers’ requirements. Stellantis is on track to become a net-zero carbon company with single-digit percentage offset of remaining emissions, inclusive, by 2038. “The transaction in question is expected to be completed in 2025.”