Stellantis-CATL Joint Venture Unveils $4.3 Billion Battery Plant Plan In Spain

Stellantis N.V. STLA shares are trading higher premarket on Tuesday. The company has partnered with CATL to invest up to €4.1 billion (around $4.3 billion) in a joint venture to build a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain.

The plant, designed to achieve carbon neutrality, will be developed in multiple phases.

The Stellantis-CATL joint venture aims to begin production at Stellantis’ Zaragoza, Spain site by late 2026, with potential capacity reaching up to 50 GWh, depending on Europe’s evolving electrical market and ongoing support from Spanish and EU authorities.

This 50-50 partnership will strengthen Stellantis’ LFP offerings in Europe, supporting the production of durable, affordable battery-electric vehicles in the B and C segments with intermediate ranges.

In November 2023, Stellantis and CATL penned a non-binding MOU to supply LFP battery cells and modules for EV production in Europe.

The transaction is slated to close in 2025, pending regulatory approvals.

Stellantis Chairman John Elkann said, “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.”

The move is at par with Stellantis’ commitment to deliver more affordable battery electric vehicles as part of its Dare Forward 2030 strategy, utilizing its dual-chemistry approach.

Last week, the company entered into an agreement with U.S.-based Zeta Energy Corp to develop cheaper lithium-sulfur batteries to be deployed in electric vehicles by 2030.

Price Action: STLA shares are up 1.31% at $13.91 premarket at the last check Tuesday.

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