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Stellantis and CATL Team Up for Major Battery Plant in Spain
Stellantis, the well-known automaker, has announced a significant collaboration with Chinese battery manufacturer CATL to establish a large-scale lithium iron phosphate (LFP) battery production facility in Spain, with a budget of approximately 4.1 billion euros (or $4.3 billion).
This 50-50 joint venture is envisioned to have the capacity to reach up to 50 gigawatt hours, depending on market developments for electric vehicles in Europe and the necessary government backing.
The new plant will be constructed at Stellantis’ existing facility in Zaragoza, located in northeastern Spain, and is anticipated to commence operations by the end of 2026. This initiative reflects Stellantis’ commitment to enhancing its LFP technology capabilities in Europe, aimed at producing high-quality and cost-effective battery-electric cars and SUVs.
The announcement comes at a time when European automakers face a myriad of hurdles on the path toward full electrification. These challenges include a lack of affordable vehicle options, a slower-than-expected expansion of charging infrastructure, and concerns regarding potential targeted tariffs from the United States.
Stellantis Chairman John Elkann emphasized the significance of this joint venture with CATL, stating that it will introduce innovative battery production to a site that is already recognized for its leadership in clean energy manufacturing. He highlighted hopes for a comprehensive sustainable approach as the partnership gains momentum. Elkann also expressed gratitude to the Spanish authorities for their support.
Following the announcement, Stellantis shares traded slightly higher at 0.2% on Tuesday morning, although the company’s stock has seen a considerable decline of over 38% in value this year.
In a related context, a LFP battery cell showcased at a recent trade fair in Hannover, Germany, signifies the advancements in battery technology that both companies are pursuing.
Last November, Stellantis and CATL signed a non-binding memorandum of understanding to supply LFP battery cells and modules locally for electric vehicle production across Europe. Robin Zeng, CEO and chairman of CATL, expressed optimism regarding the collaboration, citing the combination of advanced battery technology and Stellantis’ extensive experience in the Zaragoza market as key contributors to the project’s anticipated success.
Zeng reiterated CATL’s commitment to making zero-carbon technology widely accessible and looked forward to innovative partnerships to drive the industry forward.
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