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 corporations 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 offered in Europe.
As a part of the long-term deal, Stellantis – the dad or mum firm of Jeep, Fiat, Citreön, Peugeot, and others stated it could erect a brand new gigafactory in Europe to assist CATL producer stated LPF batteries – a chemistry that’s changing into wildly in style within the EV business as it’s cheaper to fabricate and permits OEMs to go these financial savings alongside to shoppers within the type of smaller, extra reasonably priced 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 might 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 at this time, confirming the three way partnership settlement during which they may make investments as much as 4.1 billion euros to erect the LFP manufacturing facility at Stellantis’ present manufacturing website in Zaragoza, Spain.
In response to the brand new companions, the brand new LFP battery plant can be completely carbon-neutral and erected through an funding plan in a number of phases. Stellantis chairman John Elkann elaborated:
Stellantis is dedicated to a decarbonized future, embracing all out there superior battery applied sciences to deliver aggressive electrical automobile merchandise to our clients. This necessary three way partnership with our accomplice CATL will deliver modern battery manufacturing to a producing website that’s already a frontrunner in clear and renewable vitality, serving to drive a 360-degree sustainable method. I need to thank all stakeholders concerned in making at this time’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 might 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 stated its partnership with a battery chief like CATL will allow it to implement LFP battery expertise in its crossover and SUV BEVs within the B and C segments, which can be sturdy and reasonably priced 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 imagine our cutting-edge battery expertise and excellent operation knowhow mixed with Stellantis’ decades-long expertise in working enterprise domestically in Zaragoza will guarantee a serious success story within the business. CATL’s objective is to make zero-carbon expertise accessible throughout the globe, and we stay up for cooperating with our companions globally by 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 international footprints within the works. CATL’s LFP batteries will provide Stellantis a dual-chemistry method because it already sells BEVs with lithium-ion nickel manganese cobalt (NMC) cells. The brand new facility can also be a part of the automaker’s plans to turn out to be internet zero carbon impartial by 2038.
The three way partnership transaction is predicted to be finalized someday in 2025.
FTC: We use earnings incomes auto affiliate hyperlinks. Extra.
