Stellantis and CATL invest 4 billion in Spain

The Stellantis Group continues its investments in next-generation batteries with a trusted partner, CATL.

Stellantis and CATL announced a joint investment of up to €4.1 billion to establish a lithium iron phosphate (LFP) battery factory in Zaragoza, Spain. This factory, designed to be entirely carbon-neutral, will be implemented gradually. It will begin production by the end of 2026 at the Stellantis site in Zaragoza, with a target capacity reaching up to 50 GWh, depending on the evolution of the electric vehicle market in Europe and ongoing support from Spanish and European authorities. Through this 50/50 joint venture, Stellantis will strengthen its position as a leader in the LFP battery segment, known for its durability and affordability, powering its electric vehicles in segments B and C, including crossovers and SUVs.

This initiative is part of a broader strategy outlined in November 2023 with the signing of a strategic agreement between Stellantis and CATL. This includes local sourcing of LFP cells and modules for European electric vehicle manufacturing, as well as long-term technological collaboration. Together, the two partners aim to develop an ambitious roadmap to support future advanced electric vehicles and explore opportunities to strengthen the battery value chain.

However, it is regrettable that Stellantis chose to focus such an investment in Spain rather than strengthen the capacity of its French factory in Douvrin, inaugurated in 2023. This gigafactory, resulting from a partnership with TotalEnergies and Mercedes-Benz, aims for a maximum capacity of 40 GWh by 2030, below the potential of Zaragoza. Despite its strategic importance for the electric transition in France, this choice raises questions about the balance of investments among the group’s European sites, at the expense of French industrial development.

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