Stellantis and CATL Announce $4.3 Billion EV Battery Plant in Spain

The joint venture aims to produce carbon-neutral lithium iron phosphate batteries by 2026 to support Europe's electric vehicle transition.

Stellantis and Chinese battery giant CATL will invest €4.1 billion ($4.3 billion) in a 50-50 joint venture to build a lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.
The facility, designed to be carbon-neutral, is expected to begin production by late 2026 and could reach an annual capacity of 50 GWh, contingent on market conditions and government support.
The plant will produce LFP batteries, a cost-effective alternative to nickel manganese cobalt (NMC) batteries, for Stellantis' affordable electric vehicles, crossovers, and SUVs sold in Europe.
This marks CATL's third battery plant in Europe, following facilities in Germany and Hungary, as Stellantis works toward its goal of achieving net-zero carbon emissions by 2038.
The Spanish government and EU authorities have supported the project, which is expected to create 3,000 jobs and strengthen Spain's position as a leading European car producer.