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.
Right this moment’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 may energy the automaker’s small and mid-sized EVs bought 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 will erect a brand new gigafactory in Europe to assist CATL producer stated LPF batteries – a chemistry that’s turning into wildly in style within the EV trade as it’s cheaper to fabricate and allows OEMs to cross these financial savings alongside to shoppers within the type of smaller, extra reasonably priced fashions.
Simply over a yr 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 immediately, 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 web site in Zaragoza, Spain.
In line with the brand new companions, the brand new LFP battery plant will probably be completely 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 obtainable superior battery applied sciences to carry aggressive electrical automobile merchandise to our prospects. This essential three way partnership with our accomplice CATL will carry revolutionary battery manufacturing to a producing web site that’s already a pacesetter in clear and renewable power, serving to drive a 360-degree sustainable strategy. I need to thank all stakeholders concerned in making immediately’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 start out 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 know-how in its crossover and SUV BEVs within the B and C segments, which will probably 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 know-how and excellent operation knowhow mixed with Stellantis’ decades-long expertise in working enterprise domestically in Zaragoza will guarantee a serious 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 extra revolutionary 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 provide Stellantis a dual-chemistry strategy 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 web zero carbon impartial by 2038.
The three way partnership transaction is anticipated to be finalized someday in 2025.
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