December 12, 2024: Auto manufacturer Stellantis and Chinese battery giant CATL are to invest up to €4.1 billion ($4.3 billion) in building a major lithium iron phosphate battery plant in Spain.

The partners said on December 10 they expect to start production at the 50-50 joint venture site in Zaragoza, home to an existing Stellantis car plant, by the end of 2026.

The facility could reach a 50GWh manufacturing capacity and is being designed to be completely carbon neutral.

Stellantis said the project will enable it to offer more high-quality, durable and affordable battery-electric passenger cars, crossovers and SUVs in the B and C segments with intermediate ranges.

The partners signed a non-binding memorandum of understanding in November 2023 for the local supply of LFP battery cells and modules for EV production in Europe.

Stellantis said it continues to pursue a dual-chemistry approach — lithium ion nickel manganese cobalt (NMC) and LFP —  for the development of battery cell and pack technologies.

CATL said the new plant will complement its existing European battery production operations in Germany and Hungary.

The Zaragoza deal is expected to close during 2025, subject to various regulatory approvals.

Last month, CATL announced its second-generation sodium battery that it says can operate in temperatures as low as -40°C.