Stellantis and CATL to build LFP battery factory in Spain

Green Forum
Stellantis and CATL have finalized an agreement to establish a joint venture for the construction of a major lithium iron phosphate (LFP) battery factory in Zaragoza, Spain. 

The facility, to be located at Stellantis' Zaragoza site, will be developed in phases, with production targeted to begin by the end of 2026. Once fully operational, the plant aims to achieve carbon neutrality.

The factory is expected to reach a production capacity of up to 50 GWh, depending on the evolution of Europe's energy market and continued support from Spanish and EU authorities. This joint venture will enhance Stellantis' LFP battery offerings in Europe, enabling the automaker to deliver high-quality, durable, and affordable electric vehicles, including passenger cars, crossovers, and SUVs.

In November 2023, Stellantis and CATL signed a non-binding memorandum of understanding (MOU) for the local supply of LFP battery cells and modules for electric vehicle production in Europe. The agreement also established long-term collaboration in strategic areas, including the development of a forward-looking technology roadmap to support Stellantis' electrification goals.

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