Stellantis and Chinese battery maker CATL will invest 4.1 billion euros ($4.33 billion) to build one of Europe’s largest electric vehicle battery factories in Spain, encouraged by lower costs and government funding.
The equal joint venture in Zaragoza in northeastern Spain should start production by the end of 2026 and could reach a capacity of 50 gigawatt hours – enough to power an average of 700,000 cars a day, according to the Netherlands-based Electric Vehicle Database.
The plant will supply lithium iron phosphate battery for affordable small and medium-sized cars, the companies said.
The plan comes as Europe’s carmakers have struggled with high costs and stiff competition from Chinese rivals as well as a slower-than-expected EV transition.
About 2.4 million new electric cars were registered in EU countries in 2023, against 2 million in 2022, data from the European Environment Agency shows.
Reuters