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Dodge Maker Stellantis and China's CATL Team Up for $4.3 Billion EV Battery Plant in Spain

AInvestTuesday, Dec 10, 2024 5:14 am ET
3min read


In a strategic move to bolster its electric vehicle (EV) production capabilities and reduce reliance on Asian suppliers, Dodge maker Stellantis has joined forces with China's Contemporary Amperex Technology Co., Ltd. (CATL) to build a $4.3 billion EV battery plant in Spain. This joint venture, announced on December 10, 2024, is set to produce lithium iron phosphate (LFP) batteries, focusing on affordable, durable battery systems for B- and C-segment vehicles.

The new plant, to be implemented in several phases, is expected to start production by the end of 2026 and could reach a capacity of up to 50 GWh, subject to market conditions and regulatory support from Spain and the European Union. The 50-50 joint venture between Stellantis and CATL will enable Stellantis to offer more high-quality, durable, and affordable battery-electric passenger cars, crossovers, and SUVs in the B and C segments with intermediate ranges.



This partnership aligns with Stellantis' Dare Forward 2030 strategic plan, which aims to bring more affordable battery electric vehicles to customers while leveraging its dual-chemistry strategy. The plant will also enable CATL to better meet customers' needs for advanced battery technology and support global climate ambitions.

The planned capacity of 50 GWh by 2026 aligns with Stellantis' EV production targets and market demand. Stellantis aims to have 30% of its sales from BEVs by 2025, increasing to 50% by 2030. With the growing demand for EVs, this capacity will support Stellantis' production targets and help meet the increasing market demand for affordable, durable battery electric vehicles.



The new plant in Spain, a joint venture between Stellantis and CATL, will significantly boost CATL's production capacity in Europe, helping it meet the growing demand for EV batteries. This strategic move allows CATL to better serve its customers and support global climate ambitions, while also expanding its footprint in Europe.

However, setting up a new manufacturing facility in Spain presents several potential challenges, including regulatory hurdles, production problems, and slower EV demand than expected. To mitigate these risks, CATL can leverage its experience in Europe, having already established plants in Germany and Hungary. Additionally, CATL can work closely with local authorities to ensure regulatory support and address any bureaucratic hurdles. By maintaining flexibility in production plans and adapting to market conditions, CATL can help ensure the success of the new plant.

In conclusion, the joint venture between Stellantis and CATL to build a $4.3 billion EV battery plant in Spain is a strategic move that aligns with both companies' goals of expanding EV production capabilities and reducing reliance on Asian suppliers. The planned capacity of 50 GWh by 2026 supports Stellantis' EV production targets and market demand, while also helping CATL meet the growing demand for EV batteries in Europe. Despite potential challenges, this partnership is well-positioned to succeed, given the experience and commitment of both companies.
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