CATL and Stellantis have broken ground on a $4.76 billion (€4.1bn) lithium iron phosphate gigafactory in Zaragoza, Spain.
The 50:50 joint venture marks one of Europe’s largest battery investments to date, reinforcing affordable and sustainable electric mobility across the continent.
Scheduled to begin production by the end of 2026, the gigafactory will deliver up to 50GWh capacity – enough to power one million electric vehicles annually. This output equates to a reduction of more than 30 million tonnes of CO2 emissions during vehicle lifecycles and savings of over 125 million barrels of crude oil.
The gigafactory will generate more than 4,000 direct jobs and thousands more indirectly, strengthening Europe’s battery value chain and local industrial ecosystem. Designed as Europe’s first carbon‑neutral lithium battery factory, the site will rely on over 80% renewable energy and apply Industry 4.0 standards to ensure intelligent, sustainable processes.
CATL’s investments across Germany, Hungary and Spain exceed $12.76 billion (€11bn), supporting a closed‑loop battery value chain spanning materials, manufacturing, remanufacturing and recycling.
“At our Zaragoza plant, we are introducing extreme modularity in product design and manufacturing, integrating cutting-edge cell-to-body technology,” said Andy Wu, CEO of Contemporary Star Energy, a 50/50 joint venture created by Stellantis and CATL to advance affordable and sustainable electric mobility in Europe. “This achievement, made possible through a strong and visionary partnership with CATL, will bring unprecedented flexibility while embedding the latest LFP technology into Stellantis’ STLA S platform vehicles. And this is just the beginning.”
He said that the companies are already collaborating on advanced solutions such as cell bottom venting for NCM chemistry and taking decisive steps to secure raw materials through a strategic MOU.
