Green light for the Figueruelas gigafactory: Stellantis and CATL will invest 4.1 billion

Stellantis and CATL announced on Tuesday that they have reached an agreement to invest up to € 4.1 billion to form a joint venture that will build a large-scale European lithium iron phosphate (LFP) battery plant at Stellantis Zaragoza. Designed to be completely carbon neutral, the battery plant will be implemented in several phases and investment plans and the agreement is expected to close in 2025. This confirms one of the most anticipated investments in Aragon, which secures the company’s electrical production and automotive future in the region, as well as positioning it at a European level. 

Targeted to start production by the end of 2026 at Stellantis’ Figueruelas facility, the plant could reach a capacity of up to 50 GWh, subject to the evolution of the electricity market in Europe and continued support from authorities in Spain and the European Union. The 50/50 joint venture between CATL and Stellantis will boost Stellantis’ best-in-class LFP offering in Europe, enabling the automaker to offer more high-quality, durable and affordable battery-electric passenger cars, crossovers and SUVs in the B and C segments with mid-range ranges.

The President of the Government of Aragon, Jorge Azcón, has celebrated the announcement on the social network X , where he has assured that it is “historic” for the Community and “the best possible news for the Aragonese automotive industry. “The electric battery gigafactory allows us to anchor the future of a strategic sector ,” Azcón shared. It was precisely last week when the president anticipated in the COPE Forum that in the near future “there would be historic news” for the Community, referring to the battery factory, the announcement of which had been delayed  due to the conflict with the Asian giant over tariffs on electric cars. 

No se puede empezar mejor la jornada.
La colaboración de @Stellantis y @catl_official es un anuncio histórico y la mejor noticia posible para la automoción aragonesa. La gigafactoría de baterías eléctricas nos permite anclar el futuro de un sector estratégico para nuestra…

— Jorge Azcón (@Jorge_Azcon) December 10, 2024

A wish that has finally materialized after the President of the Government of Spain, Pedro Sánchez, met this Monday with representatives of CATL to discuss the company’s investment projects in the country, including the gigafactory, and where the aid through the Pertes VEC was valued. It was last October 8 when the Ministry of Industry gave the final go-ahead to make this investment a reality, with 133.7 million from Perte VEC III, which is still pending official resolution at the end of the year. 

The factory also comes after the resignation of Stellantis CEO Carlos Tavares, a move within the highest echelons of the company that could put the projects in jeopardy, although the DGA already assured that it “would not affect” the gigafactory. Thus, it is received as a breath of hope for the Zaragoza plant that is going through a difficult situation in the midst of negotiating an ERTE that will affect 4,200 workers and with rumors of the closure of line 1 in 2025, both as “productive reorganization” measures in view of the forecast of a drop in production in the coming years. 

STELLANTIS AND CATL SIGNED AGREEMENT IN 2023

In November 2023, Stellantis and CATL signed a non-binding MoU for the local supply of LFP battery cells and modules for EV production in Europe and established a long-term collaboration on two strategic fronts: creating a bold technology roadmap to support Stellantis’ advanced battery electric vehicles (BEVs) and identifying opportunities to further strengthen the battery value chain.

“Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers,” said John Elkann, Stellantis Chairman. “This important joint venture with our partner CATL will bring innovative battery production to a manufacturing site that is already a leader in clean and renewable energy, helping to drive a 360-degree sustainable approach. I would like to thank all the stakeholders involved in making Tuesday’s announcement a reality, including the Spanish authorities for their continued support.” 

“The joint venture has taken our cooperation with Stellantis to new heights, and I believe that our cutting-edge battery technology and excellent operational know-how, combined with Stellantis’ decades of experience in local business management in Zaragoza, will ensure great success in the sector,” said Robin Zeng, Chairman and CEO of CATL. “CATL aims to make zero-carbon technology accessible worldwide, and we look forward to cooperating with our partners globally through more innovative cooperation models.”

THE PLANT WILL ENHANCE CATL’S CAPABILITIES TO SUPPORT CLIMATE GOALS

CATL is bringing cutting-edge battery manufacturing technology to Europe through its two plants in Germany and Hungary , which are already operational. The Spanish plant will enhance its capabilities to support customers’ climate goals, further underlining its commitment to advancing electric mobility and energy transition efforts in Europe and the global market.

Stellantis is employing a dual-chemistry approach – nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) – to serve all customers and explore innovative battery cell and pack technologies. Stellantis is on track to become a net-zero carbon corporation by 2038, including all scopes, with a single-digit percentage offset of remaining emissions.