[News] CATL Proposes Joint Venture for New Battery Plant in Europe

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On December 11, CATL announced that CATL and its subsidiaries and Stellantis subsidiaries and other quadrilateral subjects signed a joint venture agreement on December 10, the two sides each hold 50% of the shares, and the joint venture as the main body of the joint venture company to build a joint venture battery plant in Zaragoza City, Aragon Autonomous Region, Spain, the battery plant is expected to be a total investment of 4,038 million euros.

The JV has a registered capital of EUR 2.422 billion and its main business is the manufacture and sale of power battery cells, modules and components. CATL Luxembourg, a subsidiary of CATL , and STLA Spain and STLA France, subsidiaries of Stellantis, hold 50%, 40% and 10% of the shares respectively. The annual capacity of the power battery plant is up to 50GWh, targeting Stellantis, and the total construction period is expected to be 4 years.

According to the wechat account @EnergyStorage001, this is the third production base of CATL in Europe. The official website shows that CATL has built 13 production bases, including two overseas production bases located in Germany and Hungary. Zeng Yuchun, chairman and chief executive officer of CATL, recently mentioned that the company’s two overseas plants will be profitable in 2025 and 2026, respectively.

CATL said that this project aims to deepen the long-term strategic partnership between the Company and Stellantis, a leading global automobile manufacturer, in the field of new energy vehicles, and to promote global electrification and clean energy transformation by giving full play to and utilizing the leading advantages and resources of the two parties in their respective fields. This cooperation is in line with the Company’s global strategy and helps to further improve the Company’s internationalization layout, thereby enhancing the Company’s sustainable profitability and core competitiveness in the market, which is in line with the interests of the Company and all shareholders.

In November 2023, CATL and Stellantis signed a non-binding memorandum of understanding, agreeing that CATL will provide localized lithium iron phosphate battery cells and modules for Stellantis’ electric vehicle manufacturing in Europe, and establish long-term cooperation in two strategic directions, namely, to develop a bold technology roadmap to support Stellantis’ advanced pure electric vehicle development, and actively exploring new partnership opportunities to further enhance the battery value chain.

On Dec. 10, Stellantis Chairman John Elkann said this joint venture between the company and CATL will introduce innovative battery production to a park that has become a model manufacturing site for clean and renewable energy use, helping to drive a full range of sustainable production cycles.

(Photo credit: CATL)