Stellantis and Chinese manufacturer CATL announce the construction of an LFP battery factory in Zaragoza. With a colossal investment of 4.1 billion euros, this project strengthens European ambition in the electricity sector.
A strategic factory in Spain
Stellantis, in collaboration with the Chinese giant CATL, has confirmed the creation of a battery factory at its site in Zaragoza, in the north-east of Spain. This investment, valued at 4.1 billion euros, marks a key milestone for both partners. Production of lithium-iron-phosphate (LFP) batteries will begin at the end of 2026 and will potentially reach an annual capacity of 50 GWh, depending on market developments and support from Spanish and European authorities.
This new factory, designed to be carbon neutral, will be built in several phases. The ramp-up of production will depend on growing demand for electric vehicles, still hampered in Europe by lackluster sales and technical challenges in getting the first factories up and running. LFP technology, less expensive than traditional batteries based on nickel, manganese and cobalt (NMC), could equip between 500,000 and one million vehicles each year.
A Stellantis/CATL alliance to democratize electricity
The 50/50 joint venture between Stellantis and CATL aims to make electric cars more accessible while maintaining high quality. With models like the Citroën ë-C3 or the Fiat Grande Panda, already equipped with LFP batteries, Stellantis wants to expand its offering for intermediate market segments. These batteries, although less energy dense, present a significant economic advantage, reducing costs for consumers.
Spain, Europe's second largest automobile producer with 1.87 million vehicles assembled in 2023, is seeking to strengthen its position in the race for gigafactories. Until now, the country was lagging behind in this area compared to neighbors like Germany or Hungary, where CATL is also building factories. The announcement of this project could give a decisive boost to the Spanish automobile industry.
The agreement between Stellantis and CATL is part of a global strategy for the energy transition. Robin Zeng, CEO of CATL, welcomed the Spanish government's commitment to decarbonization, making the country particularly attractive for this type of investment. With this initiative, Spain and its partners consolidate their ambition to become leaders in automotive electrification in Europe.
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