Stellantis and Chinese giant CATL have taken a significant step in their commitment to electric mobility by announcing a €4.1 billion investment to build a lithium iron phosphate (LFP) battery gigafactory in Zaragoza. This ambitious project will materialize through a joint venture between the two companies, with production scheduled to start by the end of 2026.
Spain’s Prime Minister, Pedro Sánchez, celebrated the announcement as a clear demonstration of the companies’ commitment to the country, highlighting its importance in driving the transition towards a decarbonized future.
During a meeting at the Palacio de la Moncloa, Sánchez thanked Stellantis Chairman John Elkann and CATL CEO Robin Zeng for choosing Spain as a strategic pillar for transport electrification.
A Factory to Transform the Automotive Sector
The Zaragoza plant, with a production capacity of up to 50 GWh, will enable Stellantis and CATL to produce high-quality batteries for electric vehicles in the B and C segments, prioritizing durable, affordable models with intermediate ranges.
According to Stellantis, this project will be a key driver in expanding their electric vehicle offerings in Europe, aligning with their sustainability goals.
Additionally, the plant will have a significant economic impact in Spain, positioning itself as one of the largest investments Stellantis has ever made in the country. The initiative also strengthens CATL’s leadership in the European market, where the company already operates two plants in Germany and Hungary.
The Spanish government, committed to reindustrializing the automotive sector, has allocated over €5.5 billion in European funds through initiatives such as Perte VEC III and the Perte for Industrial Decarbonization. Stellantis has already received nearly €300 million in funding, including €133 million for its Figueruelas plant and an additional €14 million for related projects.
This project underscores the importance of public-private collaboration in developing critical infrastructure for sustainable mobility in Europe. According to CATL CEO Robin Zeng, the company’s goal is to democratize zero-emission technology and strengthen innovative partnerships to meet the growing demand for batteries in Europe.
The gigafactory is part of Stellantis and CATL’s broader efforts to lead the energy transition in the automotive sector. This project not only reinforces Spain’s position as a hub for electric mobility but also propels Europe closer to its sustainability and carbon neutrality goals.
With the support of Spanish and European authorities, this investment marks a milestone on the road to cleaner, more efficient transportation, reaffirming Stellantis and CATL’s commitment to a more sustainable future.
