CATL may open battery plant in Spain with Stellantis

The next CATL battery plant could be built in Spain with the help of Stellantis.. How published Automotive Tribune In recent days, the automaker will negotiate with the government of Pedro Sanchez about the implementation of this ambitious project.

The goal of the company under the leadership of Carlos Tavares would be build a giant factory in Zaragoza, which will initially produce batteries for electric vehicles in collaboration with CATL. Although unconfirmed, the plant is believed to be located near the automaker’s assembly line in Figuelas.

The project to establish a battery plant in Spain will involve the creation of a joint company between CATL and Stellantis. He will be responsible for the production and supply of LFP (lithium ferrophosphate) cells and modules. According to available information, the initiative will require investment of 2.5 billion euros and could create about 3,000 jobs.

By building a battery plant in collaboration with CATL, Stellantis will bet on strengthen its activities in Spain. The automaker, which includes brands from the PSA and FCA groups, has three factories in Spain. They are located in Madrid, Vigo and Zaragoza. In 2023, almost 41% of the total number of cars produced in the country were assembled here.

CATL and Stellantis analyze the possibility of building a battery plant in Spain

The relationship between CATL and Stellantis has strengthened recently. In November 2023, both companies signed a memorandum of understanding for the “local supply of LFP batteries for the European market.” At that time it became possible to create joint venture equivalent contributions, but without providing additional information in this regard.

“The Memorandum of Understanding establishes a long-term collaboration between CATL and Stellantis on two strategic pillars: creating a bold technology roadmap to support Stellantis’ advanced battery electric vehicles and identifying opportunities to further strengthen the battery value chain.”

Stellantis and CATL.

If the project goes ahead and both companies manage to build a battery plant in Spain, they will have taken a decisive step towards strengthen your value chain. After all, having a battery-only facility next to a car assembly line is a desirable scenario for any EV manufacturer. And CATL, along with Stellantis, are using their strongest features to achieve this goal.

Let us remind you that the plant in Figuelas is responsible for the production Opel Corsa electric. In addition, since 2021, we have our own battery assembly workshop. Therefore, building a CATL plant in its vicinity appears to be the most attractive option.

Of course, there is a crucial element that can influence the outcome of this story: state financial contribution. Although the initiative of Stellantis and CATL to establish a battery plant in Zaragoza will receive support from both the Spanish government and the Autonomous Community of Aragon, the amount that the central administration can provide will be insufficient.

As we indicated at the beginning, the automaker and the Chinese battery manufacturer will bet on an investment of around 2.5 billion euros. In the meantime, the Pedro Sánchez administration would offer a contribution of just under 56 million euros through the Ministry of Industry and Tourism.

Both Stellantis and CATL estimate this figure Too low. Especially considering the contribution of the Spanish government to other proposals also related to the automotive industry. The most notable example is the provision of 300 million euros to the Chinese company Envision to build a battery plant in Caceres. We will closely monitor the news.