Stellantis and Chinese battery supplier CATL are in partnership, and plan to build a Lithium Ferrous Phosphate (LFP) battery factory in Zaragoza, Spain for $4.3 billion. The plant, which will cost 4.1 billion or the equivalent of $4.3bn, could reach up to 50 gigawatt hours (GWh) and is expected to start production by the end of 2026.
With renewable energy sources in Spain, it is expected that the plant will be carbon neutral to increase the availability and use of Stellantis' Lithium Iron Phosphate (LFP) battery products within the European market.
This partnership will help increase the production and availability of battery electric vehicles (BEVs) in Europe.
This partnership comes after the two players signed a non-binding memorandum of understanding in November of 2023 to supply LFP battery cells and modules to the EV manufacturing market in Europe. The Spanish authorities expressed their support for the project saying that the partnership will promote an environmentally friendly car industry in Europe.
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This article first appeared on GuruFocus.
