Teams up with CATL to build $4.3 billion large-scale lithium iron phosphate battery plant.

Automaker Stellantis, producer of leading automotive brands including Chrysler, Dodge, FIAT, Jeep, and others, plans to build a $4.3 billion (4.1 billion euro) lithium iron phosphate (LFP) battery plant in northeastern Spain with Chinese battery giant Contemporary Amperex Technology Co., Limited (CATL).

The two industry leaders have a long-term collaboration via a non-binding memorandum of understanding signed in November 2023 for the supply of LFP battery cells and modules for Stellantis' European EV production, with the facility targeted to reach up to 50 gigawatt-hours of battery production per year, subject to the electrical market and continued support from authorities in Spain and the European Union.

"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," said CATL Chairman and CEO Robin Zeng. "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."

"Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers," said Stellantis Chairman John Elkann at the time of the announcement. "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."

The 2023 memorandum of understanding maps the strategic establishment of technologies to support Stellantis' cutting-edge battery electric vehicles and pursuit of opportunities for both companies to directly strengthen the battery value chain.

"This MoU with CATL on LFP battery chemistry is another ingredient in our long-term strategy to protect freedom of mobility for the European middle class," said Stellantis CEO Carlos Tavares. "CATL is the industry leader in this sector and together with our iconic vehicle brands, we will bring innovative and accessible battery technology to our customers while helping us achieve our carbon net zero ambition by 2038."

Featuring a long service life and high thermal stability, the plant's LFP technology will help Stellantis offer more affordable battery-electric passenger cars and SUVs on the heels of Europe's lack of affordable models, a slower-than-anticipated rollout of charging points and the looming prospect of U.S. tariffs.

As part of Stellantis' Dare Forward 2030 strategy, the company announced plans for a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the U.S. by 2030, on track to become a carbon net zero corporation by 2038.

Stellantis is continuing to develop strategic partnerships to ensure a stable, low-carbon supply of key materials for its electrified future, from alternate battery chemistries to rare earth-free magnets.

Developing high-performing and affordable electric vehicles is a key aspect of this plan, which includes offering more than 75 battery-electric models.

"We are very pleased to elevate our cooperation with Stellantis to a new level. With Stellantis' time-honored expertise in car manufacturing and CATL's advanced battery technology, we believe the partnership will be a decisive step on both parties' journey towards carbon neutrality goals," said Zeng. "We will remain dedicated to delivering more competitive and sustainable solutions for our partners to promote global energy transition."

The facility will be built at Stellantis' Zaragoza site in northeastern Spain and is expected to be up and running by the end of 2026.