MADRID, Dec. 10 (Xinhua) -- Stellantis and Chinese battery producer CATL on Tuesday announced an agreement to invest up to 4.1 billion euros (4.31 billion U.S. dollars) to form a joint venture for building a large-scale European lithium iron phosphate (LFP) battery plant in Spain.
Spanish Prime Minister Pedro Sanchez hailed the accord, saying he is "very satisfied" about the announcement. Posting on social media, he expressed gratitude to Stellantis and CATL for their commitment to Spain and their strong support for the country "to give an impulse to a de-carbonized future."
Speaking to the press on Tuesday, Spanish government spokesperson Pilar Alegria also praised the deal, highlighting the "investment, money and employment" it will generate.
According to CATL, the 50-50 joint venture is designed to be completely carbon neutral and will be implemented in several phases and investment plans.
"Targeted to start production by end of 2026 at Stellantis' Zaragoza, Spain site, the facility could reach up to 50 GWh capacity, subject to the evolution of the electrical market in Europe and continued support from authorities in Spain and the European Union," the Chinese company said in a press release posted on its website.
"The joint venture has taken our cooperation with Stellantis to new heights, and I believe our cutting-edge battery technology and outstanding operation knowhow combined with Stellantis' decades-long experience in running a business locally in Zaragoza will ensure a major success story in the industry," said CATL Chairman and CEO Zeng Yuqun.
The agreement came after Sanchez met with Zeng on Monday, along with other representatives from the Spanish government and CATL. The Spanish government has committed over 5.5 billion euros of public funds to reindustrialize the auto industry.
CATL has two plants already operational in Germany and Hungary. The new plant in Spain underscores its commitment to advancing e-mobility and energy transition efforts in Europe and the global market. (1 euro = 1.05 U.S. dollar)
A single purchase
