CATL and global automaker Stellantis officially announced that the two parties have reached an agreement to jointly invest up to 4.1 billion euros (about 31.32 billion yuan) to build a large lithium iron phosphate battery production plant in Zaragoza, Spain.
According to the agreement, the joint venture between the two parties plans to start production at the end of 2026, and the annual production capacity of the factory is expected to reach 50 GWh. The project aims to meet the growing demand for electric vehicle (EV) batteries in the European market and further promote Europe’s battery production capacity in the field of new energy vehicles.
This cooperation marks the in-depth cooperation between CATL and Stellantis in battery technology and the electric vehicle industry chain. Stellantis is a leading global automobile manufacturing group with brands including Fiat, Citroen, Peugeot, Jeep and other well-known brands. It is committed to accelerating the electrification process in the next few years and promoting the growth of global electric vehicle sales.
As a world-leading battery manufacturer, CATL will provide technical support and product supply to the joint venture. This investment is not only an important layout of CATL in the European market, but also a key step for Stellantis to achieve its electrification goals. Both parties said that the construction of the factory will strengthen the localization of the supply chain, reduce dependence on the Asian market, and will also create a large number of jobs in Europe.
The lithium iron phosphate battery of this project will become the core product of the factory. Lithium iron phosphate batteries have been widely used in the field of electric vehicles due to their excellent safety, long service life and low cost. The factory in Zaragoza, Spain will become a key link in the European electric vehicle industry chain, further supporting the green transformation of the European market and the sustainable development of the energy structure.
The construction of this project not only responds to the European government’s support policy for the new energy vehicle industry, but also meets the long-term strategic goals of CATL and Stellantis in the field of electrification. With the rapid growth of the electric vehicle market, the global demand for high-efficiency and low-cost batteries continues to rise. The cooperation between the two parties will further enhance their competitiveness in the global battery market.
After completion, the factory is expected to become one of the largest lithium iron phosphate battery production bases in Europe, and at the same time bring positive impacts to the economic development of Spain and surrounding areas. The Spanish government also welcomed the investment and said it would provide the necessary policy support to facilitate the smooth implementation of the project.
The strategic cooperation project between CATL and Stellantis will inject strong momentum into the European electric vehicle industry and contribute to promoting the global green energy transformation. With the gradual construction and production of the factory in 2026, it is expected to bring more innovative battery technologies and more efficient electric vehicle solutions to the European market.