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Stellantis worker working inside Stellantis Group’s new PHEV and hybrid vehicle eDCT assembly plant on April 10, 2024 in Turin, Italy.
Stefano Guidi | Getty Images News | fake images
car manufacturer Stellar and the Chinese battery giant CATL On Tuesday it announced plans to jointly build a large-scale €4.1 billion ($4.3 billion) lithium iron phosphate (LFP) battery plant in Spain.
The 50-50 joint venture could reach up to 50 gigawatt hours, subject to the evolution of the electric vehicle market in Europe and necessary government support.
The facility will be built at the Stellantis facility in Zaragoza, northeastern Spain, and is expected to be operational by the end of 2026.
Dodge maker Stellantis said the plant will boost the auto giant’s LFP credentials in Europe, allowing the company to make more high-quality, affordable battery-electric passenger cars and SUVs.
It comes at a time when European automakers are facing a perfect storm of challenges on the path to full electrification, including a lack of affordable modelsa slower-than-anticipated rollout of charging points and the prospect of specific US tariffs.
“This important joint venture with our partner CATL will bring innovative battery production to a manufacturing site that is already a leader in clean, renewable energy, helping drive a 360-degree sustainable approach,” said Stellantis President John Elkann. saying in a statement.
Elkann also thanked the Spanish authorities for their support.
Shares in Milan-listed Stellantis traded 0.3% higher on Tuesday morning. The stock price has plummeted more than 38% so far this year.
Stellantis and CATL, one of the world’s largest battery producers, signed a non-binding memorandum of understanding in November last year for the local supply of LFP battery cells and modules for electric vehicle production in Europe.
“I believe that our cutting-edge battery technology and excellent operational knowledge, combined with Stellantis’ decades of experience in running businesses locally in Zaragoza, will ensure a significant success story in the industry,” said Robin Zeng, CEO and president of CATL, in a statement.
“CATL’s goal is to make zero-carbon technology accessible worldwide and we look forward to cooperating with our partners globally through more innovative cooperation models,” he added.
