Stellantis NV and a Chinese partner plan to invest up to €4.1 billion ($4.3 billion) in Spain’s battery industry, giving a boost to Europe’s struggling effort to build an electric vehicle supply chain.
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(Bloomberg) – Stellantis NV and a Chinese partner plan to invest up to €4.1 billion ($4.3 billion) in Spain’s battery industry, giving a boost to Europe’s struggling effort to build an electric vehicle supply chain.
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The factory in Zaragoza will start producing lithium-iron phosphate batteries – also known as LFP – by the end of 2026, the automaker and China’s Contemporary Amperex Technology Co. Ltd. in a joint statement on Tuesday. The plant can reach a capacity of 50 gigawatt hours, which is enough to produce hundreds of thousands of batteries per year.
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Jeep-maker Stellantis is “adopting all available advanced battery technologies to bring competitive electric vehicle products to our customers,” said Chairman John Elkann.
The plan is a boost to Europe, which has been struggling in its bid to build a domestic battery industry that could break China’s dominance in EVs. Swedish battery maker Northvolt AB filed for bankruptcy last month, and other projects have been delayed or canceled.
Spain – The second largest car manufacturer in Europe after Germany – emerges as a winner in some battery funds, due to advantages such as low energy costs.
In an effort to strengthen Spain’s EV supply chain, Prime Minister Pedro Sanchez traveled to China in September to seek funding for the auto manufacturing sector. Breaking with the EU, he said he opposes a tax on Chinese EVs and urged European leaders to rethink their position. Chinese automakers have been looking to strengthen their manufacturing presence in Europe to counter the tariffs.
Spain will help finance the Stellantis and CATL plant with EU recovery funds, the second largest recipient country.
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Automakers including Stellantis are turning to cheaper LFP batteries to try to lure customers who aren’t fooled by the high prices of EVs.
The joint venture between CATL and Stellantis will produce batteries for small and medium-sized sedans, crossovers and mid-range sports cars. CATL already has two other battery factories in Hungary and Germany.
The plant will complement a Stellantis-backed battery plant in France, ACC said in a statement. ACC, a joint venture with Mercedes-Benz Group AG, will launch plans next year for established sites in Germany and Italy.
The project is expected to close in 2025 and is subject to regulatory approval.
—Courtesy of Clara Hernanz Lizarraga.
(More detailed reviews throughout.)
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