European OEM Stellantis has introduced a brand new three way partnership with the world’s largest battery producer CATL, to construct a large-scale lithium iron phosphate (LFP) battery plant at one of many former’s present manufacturing websites.
In the present day’s three way partnership announcement between Stellantis and CATL builds upon a Memorandum of Understanding (MoU) signed by each firms within the fall of 2023. On the time, we reported that the MoU kicked off a broad preliminary three way partnership with Chinese language EV battery large CATL that detailed the event and buying of LFP batteries that can energy the automaker’s small and mid-sized EVs bought in Europe.
As a part of the long-term deal, Stellantis – the father or mother firm of Jeep, Fiat, Citreön, Peugeot, and others mentioned it will erect a brand new gigafactory in Europe to assist CATL producer mentioned LPF batteries – a chemistry that’s changing into wildly common within the EV trade as it’s cheaper to fabricate and allows OEMs to go these financial savings alongside to shoppers within the type of smaller, extra inexpensive fashions.
Simply over a 12 months later, Stellantis and CATL have finalized their proposed three way partnership and can pool funds to construct a brand new LFP battery plant in Spain that would attain an annual capability of fifty GWh.
Stellantis and CATL commit as much as €4.1 billion for LFP plant
Stellantis and CATL revealed the identical press launch as we speak, confirming the three way partnership settlement wherein they’ll make investments as much as 4.1 billion euros to erect the LFP manufacturing facility at Stellantis’ present manufacturing website in Zaragoza, Spain.
In keeping with the brand new companions, the brand new LFP battery plant might be fully carbon-neutral and erected by way of an funding plan in a number of phases. Stellantis chairman John Elkann elaborated:
Stellantis is dedicated to a decarbonized future, embracing all accessible superior battery applied sciences to carry aggressive electrical car merchandise to our prospects. This vital three way partnership with our accomplice CATL will carry modern battery manufacturing to a producing website that’s already a frontrunner in clear and renewable power, serving to drive a 360-degree sustainable strategy. I need to thank all stakeholders concerned in making as we speak’s announcement a actuality, together with the Spanish authorities for his or her continued assist.
The 50/50 three way partnership between Stellantis and CATL goals to begin LFP cell manufacturing by the top of 2026. It may attain an annual capability of fifty GWh, “topic to the evolution of {the electrical} market in Europe and continued assist from authorities in Spain and the European Union.”
Stellantis mentioned its partnership with a battery chief like CATL will allow it to implement LFP battery know-how in its crossover and SUV BEVs within the B and C segments, which might be sturdy and inexpensive with “intermediate ranges.” CATL chairman and CEO Robin Zheng additionally spoke to the JV with Stellantis:
The three way partnership has taken our cooperation with Stellantis to new heights, and I consider our cutting-edge battery know-how and excellent operation knowhow mixed with Stellantis’ decades-long expertise in operating enterprise regionally in Zaragoza will guarantee a significant success story within the trade. CATL’s objective is to make zero-carbon know-how accessible throughout the globe, and we look ahead to cooperating with our companions globally by means of extra modern cooperation fashions.
When manufacturing begins, the Spanish facility would be the third CATL battery plant in Europe, becoming a member of present operations in Germany and Hungary alongside different world footprints within the works. CATL’s LFP batteries will supply Stellantis a dual-chemistry strategy because it already sells BEVs with lithium-ion nickel manganese cobalt (NMC) cells. The brand new facility can be a part of the automaker’s plans to change into web zero carbon impartial by 2038.
The three way partnership transaction is anticipated to be finalized someday in 2025.
FTC: We use earnings incomes auto affiliate hyperlinks. Extra.
