Stellantis and CATL break ground on LFP gigafactory in Spain
Stellantis’ 50:50 joint venture with battery maker CATL – Contemporary Star Energy – has broken ground on a 50 GWh lithium phosphate battery (LFP) gigafactory in Zaragoza, Spain, next to Stellantis’ assembly plant there.
The €4.1 billion ($4.8 billion) facility will supply LFP batteries for electric vehicles in the B, B SUV and C segments, and potentially for a light commercial vehicle (LCV). Those batteries will be supplied to the Zaragoza plant and other Stellantis plants manufacturing EVs in the different segments. The gigafactory is expected to be operational by the end of 2026 and will provide jobs for 4,000 workers.
“This collaboration is part of the two companies' commitment to offering electric vehicles that are affordable, sustainable and safe, and to working toward a carbon-free future, said a spokesperson for Contemporary Star Energy.
CATL said the gigafactory will incorporate cutting-edge technologies such as cell-to-body design, which enables cells to be integrated directly into the vehicle structure, improving efficiency and safety.
A stronger battery supply chain
Stellantis signed a non-binding MoU with CATL in November 2023 for the local supply of LFP battery cells and modules for electric vehicle production in Europe. The agreement aims at a long-term collaboration to create “a bold technology roadmap to support Stellantis’ advanced battery electric vehicles (BEV) and [to identify] opportunities to further strengthen the battery value chain”, according to Stellantis.
The spokesperson for Contemporary Star Energy said the choice of LFP batteries is complementary to its high-performance nickel manganese cobalt (NMC) batteries produced in the gigafactory in Douvrin (France), which she said offered high-range autonomy. “This strategy, based on a dual chemistry approach, enables the company to meet the needs of the widest possible range of customers,” added the spokesperson.
Stellantis has previously said it aims to use LFP batteries to power its European electric vehicle production, supporting its Dare Forward 2030 electrification targets, though those targets have been significantly revised since the original 2022 plan to make 100% of its passenger cars battery electric in Europe. At this year’s IAA Munich auto show, Jean-Philippe Imperato, then chief operating officer for Stellantis Enlarged Europe, said the carmaker will be focusing on a mix of EV, plug in and hybrid vehicles. Imperato is now head of aftermarket division Stellantis &You, as well as being CEO of Maserati, and Emanuele Cappellano has stepped in to head the Enlarged Europe region.
Lighthouse gigafactory
CATL will be using Industry 4.0 technology at the Zaragoza battery plant, including AI, big data and machine learning, which enables it to produce complex, high-quality batteries at higher speed. The technology enables CATL to make LFP batteries with an enhanced defect rate in parts per billion (PPB), meaning there is a maximum of one defective item for every billion produced, against the industry average of parts per million (PPM). So far three of CATL’s ‘Lighthouse’ facilities in China have been recognised by the World Economic Forum (WEF) for the adoption of Industry 4.0 technology. Those are in facilities in Ningde, Yibin and Liyang.
“The same Lighthouse-level expertise and technology will be applied in the joint venture in Zaragoza, and CATL adopts the same standards of automation in production processes globally to ensure the consistency of products,” said the spokesperson.
The gigafactory will use more than 80% renewable energy supply and ensure sustainable processes, according to the company. “We plan to build our own green power supply,” said the spokesperson. “We will install off-site photovoltaic and watt peak [solar energy systems]. “We have a variety of solutions, which can be purchased from [solar power] companies, constructed independently or in cooperation with other investors.”
