CATL’s next battery factory could be installed in Spain, with the help of Stellantis. As published The Automotive Tribune In recent days, the automaker would be negotiating with the Government of Pedro Sánchez to move forward with this ambitious project.
The intention of the company directed by Carlos Tavares would be build a gigafactory in Zaragoza, which would initially be dedicated to the production of batteries for electric cars in collaboration with CATL. Although this is not confirmed, the idea would be that the factory is located near the automaker’s assembly line in Figueruelas.
The project to install this battery factory in Spain would include the formation of a joint company between CATL and Stellantis. It would be responsible for producing and supplying LFP (lithium ferrophosphate) cells and modules. According to the information available, the initiative would require an investment of 2.5 billion euros and could generate about 3,000 jobs.
With the installation of a battery factory in collaboration with CATL, Stellantis would bet on reinforce its operations in Spain. The automaker, which includes the brands of the PSA and FCA groups, has three plants in Spanish territory. These are located in Madrid, Vigo and Zaragoza. In 2023, almost 41% of the total vehicles produced in the country were assembled there.
CATL and Stellantis analyze installing a battery factory in Spain
The relationship between CATL and Stellantis has strengthened in recent times. In November 2023, both companies signed a memorandum of understanding for “local supplies of LFP batteries for the European market.” At that time, the possibility of creating a joint venture of equivalent contributions, but without providing further details in this regard.
“The MOU establishes a long-term collaboration between CATL and Stellantis on two strategic fronts: creating a bold technology roadmap to support Stellantis’ advanced battery electric vehicles and identifying opportunities to further strengthen the battery value chain “.
Stellantis and CATL.
If the project progresses and both companies manage to install a battery factory in Spain, they would take a crucial step to strengthen your production chain. After all, having facilities dedicated exclusively to battery manufacturing adjacent to an automobile assembly line is the desired scenario for any electric car manufacturer. And CATL together with Stellantis are playing their strongest chips to achieve this.
Let us keep in mind that the Figueruelas plant is responsible for the production of the Opel Corsa electric. In addition, since 2021 it has its own battery assembly workshop. Therefore, it is presented as the most attractive option to build a CATL factory in its vicinity.
Of course, there would be a crucial element that could influence the outcome of this story: the state economic contribution. Although the initiative of Stellantis and CATL to install a battery factory in Zaragoza would have the support of both the Government of Spain and the autonomous community of Aragon, the numbers that the central administration could provide would fall short.
As we indicated at the beginning, the automaker and the Chinese battery manufacturer would bet on an investment of about 2.5 billion euros. Pedro Sánchez’s administration, meanwhile, would have offered a contribution of just under 56 million euros through the Ministry of Industry and Tourism.
Both Stellantis and CATL would consider that figure to be Too low. Especially, taking into account the contributions that the Government of Spain has provided to other proposals also linked to the automotive industry. The most notable case being the 300 million euros granted to the Chinese company Envision to install a battery factory in Cáceres. We will be attentive to the news.