An electric battery gigafactory will be built in Zaragoza, Spain. The name of Stellantis will appear on the façade alongside that of Catl, the Chinese manufacturer of lithium batteries. It is the result of the agreement signed between the two giants to invest up to 4.1 billion euros in the construction of a European plant for lithium iron phosphate (LFP) batteries, those present in electric cars.
Designed to be completely carbon neutral, the battery plant will be built in several phases and subsequent investment plans. The plant is scheduled to start production in late 2026 and its plans are part of the 50-50 joint venture between the world’s largest battery maker and the fourth-largest automaker that owns the Peugeot, Jeep and Fiat brands. The plant could reach a capacity of 50 gigawatt hours, enough to power an average of 700,000 cars per day, depending on the evolution of the electricity market in Europe and the continued support of Spanish and European authorities.
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Although the batteries produced in Zaragoza will be for small cars, the joint venture between Catl and Stellantis will enhance the lithium battery offering of the European automotive giant. Stellantis’ agreement with the Chinese group marks a new brake on European ambitions. Brussels had tried to reduce its dependence on Chinese batteries by investing in the development of the technology, but these efforts were in vain after the Swedish company Northvolt filed for bankruptcy in recent weeks.
Spain was among the countries that abstained in the vote to introduce tariffs on electric cars imported from China. Recently, Spanish Prime Minister Pedro Sanchez also asked Brussels to “reconsider” the EU’s position on the issue.
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