Stellantis (NYSE: STLA) and Chinese battery manufacturer CATL announced plans to invest €4.1 billion ($4.33 billion) in an electric vehicle battery factory in Zaragoza, northern Spain. The joint venture, equally owned by both companies, aims to commence production by late 2026.
The plant’s capacity could reach 50 gigawatt-hours, contingent on the growth of Europe’s EV market and support from European and Spanish authorities, according to the statement.
Stellantis Chairman John Elkann highlighted that the project would introduce “innovative battery production” to a facility already recognized for its focus on clean and renewable energy. He also expressed gratitude to Spanish authorities for their backing.
CATL Chairman and CEO Robin Zeng met with Spanish Prime Minister Pedro Sánchez in Madrid on Monday to discuss the initiative.
Stellantis is also the largest stakeholder in the ACC battery joint venture with Mercedes and French energy giant TotalEnergies. While ACC has started operations at a gigafactory in France, plans for additional facilities in Italy and Germany have been delayed due to subdued demand for EVs.
(Exchange rate: $1 = €0.9472)
