MADRID — Franco-Italian automaker Stellantis and Chinese battery giant Contemporary Amperex Technology Co Ltd (CATL) have announced a major investment of 4.1 billion euros ($4.3 billion) to form a joint venture aimed at constructing a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The facility, slated to begin production by the end of 2026, will have the potential to reach a capacity of up to 50 gigawatt-hours (GWh), enough to power an estimated 700,000 electric vehicles (EVs) per day.
This move marks another significant step for CATL, the world’s largest EV battery manufacturer, in its global expansion. The company has already made inroads into Europe with operational plants in Germany and Hungary. The new joint venture with Stellantis will bolster the automaker’s LFP battery portfolio in Europe, enabling it to offer more affordable electric vehicles.
“Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive EV products to our customers,” said Stellantis Chairman John Elkann. He added that the collaboration will bring innovative battery production to a site already known for its leadership in clean and renewable energy, contributing to a sustainable, 360-degree approach.
In November 2023, Stellantis and CATL had signed a non-binding agreement to secure local supplies of LFP battery cells and modules for their European EV production. The agreement also laid the groundwork for a long-term partnership focused on advancing battery technologies and strengthening the battery value chain.
Robin Zeng, Chairman and CEO of CATL, emphasized the strategic nature of the partnership, stating, “This new joint venture will combine our cutting-edge battery technology and operational expertise with Stellantis’ decades of experience in the Zaragoza region, ensuring a major success in the industry.”
Chinese battery manufacturers have been increasingly dominant in the global EV battery market. According to SNE Research, Chinese companies accounted for 65.5% of global EV battery installations in the first 10 months of 2024, with CATL alone securing 36.8% of the market share.
Industry expert Pan Helin noted that as competition intensifies in China, expansion into overseas markets is essential for battery manufacturers to achieve economies of scale. “If they don’t expand internationally, they won’t be able to achieve the scale effect in power battery manufacturing,” Pan said, pointing to the significant growth potential in overseas markets.
Despite ongoing geopolitical tensions, Pan added that Chinese battery companies continue to provide high-quality, affordable technologies, helping to meet global demand for sustainable and cost-effective solutions in the growing EV market.