Multinational carmaker Stellantis and Chinese battery giant CATL will invest up to 4.1 billion euros in a joint battery cell factory in Spain, the companies said in a statement on Tuesday.
Production at the lithium iron phosphate (LFP) cell plant in the northeastern Spanish city of Zaragoza is expected to start in late 2026, they said.
The plans include several expansion phases. The factory could eventually produce up to 50 gigawatt hours of battery capacity annually, the statement said.
The announcement follows a letter of intent signed by the companies just over a year ago.
Stellantis – the parent company of Opel, Fiat, Chrysler, among others – wants to use the batteries in smaller, compact cars and SUVs with an average range.
LFP batteries compete with lithium-ion cells, which are traditionally used in automotive batteries. LFP cells are cheaper to produce and last longer, but provide less energy than traditional lithium-ion cells.
The plant’s capacity would be sufficient to equip more than 900,000 Opel Mokka electric cars, each with a battery capacity of 54 kilowatt hours, the statement said.
The deal is expected to close in 2025, with the joint venture being equally owned by Stellantis and CATL.
