Stellantis and Chinese battery supplier CATL are teaming up and plan to build a lithium ferrous phosphate (LFP) battery factory in Zaragoza, Spain, for $4.3 billion. The plant, which will cost $4.1 billion or equal to $4.3 billion, could reach a capacity of 50 gigawatt hours (GWh) and is expected to start production before the end of 2026.
Using Spain’s renewable energy sources, the plant is planned to be carbon neutral to increase the availability and use of Stellantis’ lithium iron phosphate (LFP) battery products in the European market.
This partnership will help increase the production and availability of affordable battery electric vehicles (BEVs) in Europe.
This partnership comes after both players signed a non-binding Memorandum of Understanding in November 2023 to supply LFP battery cells and modules to the EV manufacturing market in Europe. Spanish authorities expressed their support for the project, adding that the partnership will promote the environmentally friendly automotive industry in Europe.
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This article first appeared on GuruFocus.
