Stellantis and CATL collaborate to establish a $4.3 billion EV battery factory in Spain.

• On Tuesday, Stellantis and CATL revealed plans to collaborate on constructing a 4.1 billion euro ($4.3 billion) LFP battery factory in Spain.
• Stellantis, the car giant, announced that the plant will enhance its "best-in-class" LFP credentials in Europe, allowing the company to provide more high-quality and affordable battery-electric passenger cars and SUVs.
• Europe's automakers are currently grappling with a multitude of obstacles as they strive towards complete electrification.

On Tuesday, the automaker and the Chinese battery giant CATL revealed plans to collaborate on constructing a 4.1 billion euro ($4.3 billion) LFP battery plant in Spain.

The potential of the 50-50 joint venture to achieve up to 50 gigawatt hours is contingent on the development of the electric vehicle market in Europe and the provision of necessary government backing.

By the end of 2026, a facility will be constructed at Stellantis' Zaragoza site in northeastern Spain.

Stellantis, the car giant, announced that the plant will enhance its "best-in-class" LFP credentials in Europe, allowing the company to produce more high-quality and affordable battery-electric passenger cars and SUVs.

Europe's automakers are facing a perfect storm of challenges on the road to full electrification, including a lack of affordable models, a slower-than-anticipated rollout of charging points, and the prospect of targeted U.S. tariffs.

Stellantis Chairman John Elkann stated that the joint venture with 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.

Elkann also thanked Spanish authorities for their support.

On Tuesday morning, Stellantis' shares on the Milan stock exchange rose 0.3%. Despite this, the stock's price has fallen more than 38% year-to-date.

In November 2020, Stellantis and CATL, a leading global battery manufacturer, entered into a non-binding memorandum of understanding to provide LFP battery cells and modules for electric vehicle production in Europe.

CATL CEO and chairman Robin Zeng stated that the company's advanced battery technology, exceptional operational expertise, and Stellantis' extensive experience in local business operations in Zaragoza will lead to a significant success story in the industry.

"Our objective is to make zero-carbon technology accessible worldwide, and we are excited to collaborate with our global partners through innovative cooperation models," he stated.