Stellantis, a leading automaker, and China’s CATL (CATL), a top battery manufacturer, are investing 4.1 billion euros ($4.33 billion) to build one of Europe’s largest electric vehicle battery factories in Zaragoza, Spain. The joint venture aims to reduce reliance on Asian suppliers and attract green subsidies.
The factory, which will start production by the end of 2026, is expected to have a capacity of 50 gigawatt hours, enough to power an average of 700,000 cars per day. The plant will supply lithium iron phosphate batteries for affordable small and medium-sized cars.
Europe’s carmakers face high costs and stiff competition from Chinese rivals as the region seeks to cut its reliance on Asia and win a green subsidies race with the United States. This decision supports Spain’s efforts to attract EV battery makers and take advantage of lower energy and labor costs, as well as government funding.
The Zaragoza plant will be CATL’s third factory in Europe, following two existing plants in Germany and Hungary. Stellantis plans to boost EV production at its Aragon and Galicia regions with the new factory.
Spain has been successful in attracting foreign investment for battery production, thanks to its abundant wind and solar power. The country’s renewable energy represents four-fifths of installed power capacity in the Aragon region, making it an attractive location for battery plants.
Source: https://www.reuters.com/business/autos-transportation/stellantis-chinas-catl-invest-433-bln-ev-battery-factory-spain-2024-12-10