CATL and Stellantis to Energize Spain with €4.1 Billion Battery Factory

Chinese battery giant CATL and Stellantis are set to establish a battery factory in Zaragoza, Spain, investing €4.1 billion. The venture aims for carbon neutrality by 2026, utilizing renewable energy. This collaboration addresses the EU's green transition goals as it phases out internal combustion vehicles post-2035.

Chinese electric battery leader CATL and automotive titan Stellantis revealed plans on Tuesday for a significant joint battery factory in northern Spain's Zaragoza region.

The plant is expected to produce lithium iron phosphate batteries by 2026's close, with the project representing an investment of €4.1 billion. The facility aims for carbon neutrality, leveraging Spain's solar, wind, and water resources.

This move follows a November 2023 agreement between CATL and Stellantis to boost electric car battery production in Europe. With the cessation of internal combustion vehicles by 2035, the EU is fostering a green transition. The EU's tariffs on Chinese electric vehicles aim to protect local industries and drive production into Europe.

(With inputs from agencies.)