As part of the energy transition, Stellantis continues to expand its electric battery manufacturing capabilities. The Group announces a major investment with CATL to build a Lithium Iron Phosphate (LFP) battery plant in Zaragoza, Spain. This initiative aims to produce sustainable and affordable batteries, in line with Stellantis' ambition to make electric mobility more accessible.
Stellantis accelerates energy transition
As electric car sales stabilise in Europe, Stellantis is stepping up its efforts to prepare for the future. After investing in the development of lithium-sulphur batteries for 2030, the group is now focusing on LFP batteries. Intended for vehicles in the B and C segments, they offer a competitive alternative with medium ranges at more accessible prices. The new plant in Zaragoza, scheduled for 2026, will play a key role in this strategy, reinforcing Stellantis' commitment to its decarbonisation objective.
An LFP battery plant to support electric ambitions
Stellantis and CATL announce the investment of 4.1 billion euros in a joint venture to build an LFP battery plant in Zaragoza. This plant, designed to be carbon neutral, could reach a production capacity of 50 GWh, depending on the evolution of the European electricity market.
This new plant will serve several purposes: to strengthen the supply of LFP batteries, to improve the local supply of electric vehicles produced in Europe and to offer solutions adapted to the B and C segments, in particular crossovers, saloons and SUVs.
John Elkann, Chairman of Stellantis, underlines the importance of this collaboration:
"Stellantis is committed to a decarbonised future and is embracing all available advanced battery technologies to offer competitive electric vehicles to our customers. This important joint venture with our partner CATL will bring innovative battery production to a manufacturing site already recognised as a leader in clean and renewable energy, contributing to a 360-degree sustainable approach. I would like to thank all stakeholders for making today's announcement possible, including the Spanish authorities for their continued support.
Robin Zeng, Chairman and CEO of CATL, also highlights the benefits of the partnership:
"The joint venture has taken our partnership with Stellantis to new heights, and I am confident that our cutting-edge battery technology and exceptional operational expertise, combined with Stellantis' decades of experience running local operations in Zaragoza, will ensure a great success in the industry. CATL's goal is to make zero carbon technology accessible worldwide and we look forward to working with our partners around the world through more innovative models of collaboration.
This plant complements CATL's existing facilities in Germany and Hungary and confirms the company's commitment to supporting electric mobility in Europe.
A multi-technology strategy to meet all needs
With this plant, Stellantis is reinforcing its dual-chemistry approach, combining nickel-manganese-cobalt (NMC) batteries produced by ACC and lithium-iron-phosphate (LFP) batteries supplied by CATL. This strategy makes it possible to cover different market segments:
NMC batteries, suitable for premium or long-range vehicles.
LFP batteries, more accessible and intended for B and C segment models.
Future lithium-sulphur batteries, developed with Zeta Energy, which will offer higher energy density and should be introduced by 2030.
This technological diversity allows Stellantis to meet the different needs of individuals and professionals, while supporting its ambition to go fully electric by 2030, in line with its Dare Forward 2030 strategic plan.
With the announcement of this new LFP battery plant in Spain, Stellantis confirms its determination to achieve its electric mobility goals. Despite the departure of Carlos Tavares, the group remains committed to an ambitious energy transition. The Zaragoza plant, planned for 2026, is an important step in building a sustainable and competitive European supply chain, while strengthening its ability to deliver electric vehicles for all.
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