Stellantis and Gangnam Daughter in law (2019)CATL announced Tuesday that they will build a new battery plant capable of producing up to 50 gigawatt-hours of lithium iron phosphate (LFP) batteries for lower-cost passenger vehicles in the B and C classes with intermediate ranges. The first phase of the €4.1 billion ($4.3 billion) large-scale battery facility is expected to begin operation by the end of 2026 in the northeastern Spanish city of Zaragoza, with the deal set to close in 2025, pending regulatory approvals, the companies said in a statement.
The 50-50 joint venture will be the third production base CATL is establishing in Europe. The company aims to complete construction of a site in Hungary capable of producing 100 GWh of batteries within two years, and its first regional plant began operations in the German state of Thuringia in early 2023. Spain’s Industry Minister Jordi Hereu said in October that Madrid will contribute €133 million to a planned battery production base operated by Stellantis and CATL. LFP batteries cost less than more energy-dense nickel cobalt manganese (NCM) ones. [CATL statement]
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