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A JOINT venture will see €4.1 billion spent on a new electric car battery factory in Zaragoza with an opening date of late 2026. Stellantis and Chinese battery maker CATL say
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The Envision Energy factory in Spain will develop and manufacture the latest generation of lithium iron phosphate (LFP) battery products, with production expected to begin
View moreMadrid (AFP) – Car giant Stellantis and Chinese manufacturer CATL said Tuesday they would build a $4.3-billion factory to make electric vehicle batteries in Spain, the latest bid to boost Europe's troubled EV drive. They said they aim to start production by the end of 2026 at the site in the northern city of Zaragoza.
A JOINT venture will see €4.1 billion spent on a new electric car battery factory in Zaragoza with an opening date of late 2026. Stellantis and Chinese battery maker CATL say the plant would produce lithium-iron phosphate batteries — also known as LFP — which are cheaper than conventional units and therefore more attractive to potential car buyers.
Spain’s Industry Minister Jordi Hereu said in October that Madrid will contribute €133 million to a planned battery production base operated by Stellantis and CATL. LFP batteries cost less than more energy-dense nickel cobalt manganese (NCM) ones. [CATL statement]
The Zaragoza site would be CATL’s third factory in Europe; the other two are wholly owned by the battery maker. Spain — Europe’s second largest car producer after Germany — is emerging as a winner for some battery investments, due to advantages such as lower energy costs.
The first phase of the €4.1 billion ($4.3 billion) large-scale battery facility is expected to begin operation by the end of 2026 in the northeastern Spanish city of Zaragoza, with the deal set to close in 2025, pending regulatory approvals, the companies said in a statement.
Spain — Europe’s second largest car producer after Germany — is emerging as a winner for some battery investments, due to advantages such as lower energy costs. An electric car battery is being built by Volkswagen in Sagunto (Valencia province) and there are plans for two others in the country.
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