A Strategic Move Towards Sustainable Mobility

Stellantis NV, a leading automaker, and Contemporary Amperex Technology Co., Ltd. (CATL), a prominent Chinese electric vehicle battery manufacturer, have announced a significant joint venture. This partnership, marked by a non-binding memorandum of understanding, aims to establish a lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The two companies are set to invest up to €4.1 billion in this 50-50 joint venture, signaling a substantial commitment to the future of electric vehicle technology.

The proposed facility is designed to achieve an annual production capacity of 50 gigawatt-hours (GWh) and is scheduled to commence operations by the end of 2026. The completion of this transaction is anticipated in 2025, contingent upon meeting standard regulatory requirements. This strategic move is expected to bolster the global supply chain for electric vehicle batteries, addressing the growing demand for sustainable mobility solutions.

CATL's Chairman and CEO, Robin Zeng, expressed optimism about the venture, stating, "The joint venture has taken our cooperation with Stellantis to new heights, and I believe our cutting-edge battery technology and outstanding operation knowhow combined with Stellantis' decades-long experience in running business locally in Zaragoza will ensure a major success story in the industry."