Stellantis, the parent company of Chrysler, Dodge, Jeep, and Citroen, has partnered with Chinese energy solutions company CATL to establish a $4.3 billion (€4.1 billion) joint venture aimed at building a large-scale EV battery plant in Zaragoza, Spain.

The new facility will focus on producing lithium iron phosphate (LFP) batteries, which are less costly to manufacture compared to nickel manganese cobalt (NMC) batteries. This cost-efficiency is expected to enable Stellantis to produce more affordable electric vehicles.

“The new plant will allow Stellantis to offer more high-quality, durable, and affordable battery-electric passenger cars, crossovers, and SUVs in the B and C segments with intermediate ranges,” Stellantis stated.

The battery plant will be implemented in phases, with production beginning by the end of 2026 and a planned capacity of up to 50 GWh. The facility will also aim for carbon neutrality. Stellantis Chairman John Elkann emphasized the importance of the initiative in advancing the company’s decarbonization strategy.

“Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers,” 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.”

Robin Zeng, Chairman and CEO of CATL, expressed optimism about the collaboration, highlighting the synergy between CATL’s technology and Stellantis’ expertise. “The joint venture has taken our cooperation with Stellantis to new heights,” Zeng said. “I believe our cutting-edge battery technology and outstanding operation knowhow combined with Stellantis’ decades-long experience in running business locally in Zaragoza will ensure a major success story in the industry.”

The new battery plant represents a significant step forward for Stellantis and CATL in their efforts to produce sustainable and affordable electric vehicles, aligning with global trends toward green energy and carbon neutrality. With production timelines and sustainability goals in place, the joint venture is poised to make a substantial impact on the EV market.

Image: Stellantis