Chinese battery maker CATL and European carmaker Stellantis have formed a joint venture to build an electric vehicle battery factory in northern Spain.
The two companies said on Tuesday they would invest 4.1 billion euros ($4.33 billion) to build a factory in Zaragoza. They have formed a 50-50 joint venture for the project and expect to start producing cells by the end of 2026.
The plant’s capacity could reach 50 gigawatt-hours, depending on the development of the region’s electric vehicle market and support from authorities, they said in a statement.
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Europe has been seeking to attract electric vehicle battery makers to build factories in the region, home to automakers such as Volkswagen AG and Stellantis, in an attempt to reduce its reliance on Asia and win the race for green subsidies with the United States.
However, the program faced bureaucratic hurdles, production issues, and Electric vehicle demand lower than expected.
Last month, Sweden Northvolt files for Chapter 11 bankruptcy protection The company went from being the European battery champion to a company struggling to stay afloat after losing a major customer and running out of money.
Stellantis Chairman John Elkann said the CATL-Stellantis joint venture will “bring innovative battery production to a manufacturing base that is already a leader in clean and renewable energy.”
CATL Europe third factory
CATL Chairman and CEO Robin Zeng visited Madrid on Monday and met with Prime Minister Pedro Sánchez.
The Zaragoza plant will be CATL’s third factory in Europe; the other two are wholly owned by the battery manufacturer.
CATL operates a six-year-old factory in Germany, its first factory in Europe, with a total investment of 1.8 billion euros and a final production capacity of 14 GWh.
it is building a New factory in Hungary The investment is 7.3 billion euros and the planned production capacity is 100GWh.
At the same time, Stellantis is also the company’s largest investor. ACC battery manufacturing joint venture in partnership with Mercedes and French oil company TotalEnergies.
ACC has started production at its gigafactory in France, while development at two other gigafactories in Italy and Germany has stalled due to sluggish demand for electric vehicles.
- Reuters Additional editing by Jim Pollard
See also:
China CATL focuses on “zero-carbon” power grid, electric vehicle platform
China’s CATL’s new battery targets extended-range hybrids
Global car sales decline, electric vehicle purchases remain strong – AT
CATL bus battery can last 1.5 million kilometers – CNC
Trade tensions with China ‘hinder investment from carmakers’
China leads in rechargeable sodium batteries – New York Times
CATL, Gotion under scrutiny in the U.S. for “using forced labor”
EV battery maker CATL launches 1,000km power unit on a single charge
CATL in talks with Tesla to license U.S. battery technology: Wall Street Journal
China’s NIO and CATL to collaborate on longer-life batteries
