Stellantis and CATL to Boost Europe’s EV Infrastructure

Boosting Europe’s electric vehicle (EV) infrastructure is critical to achieving the region's sustainability goals, reducing carbon emissions, and supporting the shift toward cleaner transportation. As governments and businesses strive to meet ambitious targets, investments in European EV infrastructure and battery manufacturing are crucial to ensuring the long-term success of the transition. A key development in this effort is the announcement of a joint venture between Stellantis and CATL, who will invest up to €4.1 billion to build a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. This collaboration marks a significant step toward boosting Europe’s electric vehicle (EV) production while supporting carbon-neutral manufacturing.

A major boost to Europe’s EV infrastructure

The plant, expected to begin production by late 2026, will be implemented in phases and could reach a capacity of 50 GWh, depending on market demand and ongoing support from Spanish and European Union authorities, aligning with EU initiatives like the European Green Deal and battery regulation strategies aimed at bolstering energy independence and sustainable industrial growth. The facility will focus on supplying Stellantis with high-quality, durable, and affordable LFP batteries for electric passenger cars, crossovers, and SUVs in Europe’s B and C segments.

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

Robin Zeng, Chairman and CEO of CATL, added, “The joint venture has taken our cooperation with Stellantis to new heights. I believe our cutting-edge battery technology combined with Stellantis’ decades-long local experience will ensure a major success story in the industry.”

Strategic partnerships drive the industry forward

This partnership builds on a November 2023 memorandum of understanding (MOU) between the companies to strengthen European battery production capabilities. CATL, which is already operational in Germany and Hungary, will play a pivotal role in enhancing Europe’s EV infrastructure by creating thousands of local jobs, fostering innovation in battery technology, and supporting energy independence through regional production of critical EV components.

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Industry observers have noted the significance of the joint venture on the social media platform LinkedIn.  User Leo Gao, battery sales manager, commented,

While user Hans Eric Melin, Managing Director at Circular Energy Storage, added further perspective:

The Zaragoza plant is part of Stellantis’ broader strategy to achieve carbon net zero by 2038. By employing both lithium-ion NMC and LFP chemistries, Stellantis is addressing diverse customer needs while advancing sustainable mobility. The transaction is expected to close in 2025, pending regulatory approval.