The Spanish plant will be CATL's third in Europe, with a total planned investment of $4.26 billion and an annual capacity of up to 50 GWh.
Chinese power battery giant Contemporary Amperex Technology Co Ltd (CATL, SHE: 300750) plans to build a joint venture plant in Spain with European carmaker Stellantis to consolidate its leadership position in the battery sector.
Four parties, including CATL, one of its subsidiaries, and 2 subsidiaries of Stellantis, signed an agreement on December 10, 2024, in which CATL and Stellantis plan to jointly fund a joint venture in Spain, with each holding 50 percent of the shares, according to a stock exchange announcement.
CATL and Stellantis will use the JV as the entity for the construction of a joint venture battery plant in the city of Zaragoza, in the autonomous community of Aragon, Spain, with an estimated total investment size of €4.038 billion ($4.26 billion).
The plant -- CATL's third in Europe -- will have an annual capacity of up to 50 GWh and will have Stellantis as its target customer, according to CATL's announcement.
CATL currently has a battery plant in Germany and one in Hungary, both of which are already in operation.
The total construction period for the Spanish project is expected to be four years, CATL said, adding that the plan is still subject to antitrust approvals in various countries, as well as approvals from the Chinese and Spanish governments.
Separately, according to Stellantis' announcement, the joint venture will build a large European lithium iron phosphate (LFP) battery plant in Spain, with production scheduled to begin at Stellantis' facility in Zaragoza by the end of 2026.
The plant could have a capacity of up to 50 GWh, depending on the development of the European electrical market and the continued support of the Spanish and EU authorities, Stellantis said.
The joint venture will boost Stellantis' LFP offering in Europe, enabling it to offer a wider range of high-quality, durable and affordable battery-electric passenger cars, crossovers and mid-range B- and C-segment SUVs, the automaker said.
The deal is expected to close in 2025 and is subject to customary regulatory conditions, Stellantis said.
Stellantis is Europe's second-largest automaker by sales and is listed on the New York Stock Exchange in the US, Euronext Paris in France and Euronext Milan in Italy.
The Amsterdam, Netherlands-based auto giant owns well-known car brands including Peugeot, Citroen, Jeep, Alfa Romeo, and Maserati.
Stellantis plans to be the investor in this joint venture through its French company Stellantis Auto SAS (STLA France) and its Spanish subsidiary Stellantis Espana SL (STLA Spain), according to CATL's announcement.
CATL plans to be the investor in the joint venture through its subsidiary Contemporary Amperex Technology Luxembourg S.à.r.l. (CATL Luxembourg).
The joint venture will be controlled by CATL, with CATL Luxembourg holding a 50 percent stake and STLA Spain and STLA France holding 40 percent and 10 percent, respectively.
CATL and Stellantis signed a non-binding memorandum of understanding (MOU) in November 2023 for the local supply of LFP battery cells and modules for EV production in Europe.
CATL is the world's largest power battery maker, with 252.8 GWh of EV batteries installed in January-October, up 28.3 percent from 197.0 GWh in the same period last year, according to South Korean market researcher SNE Research.
The battery maker ranked No. 1 in the world in the January-October period with a 36.8 percent share, making it the only battery supplier in the world with a market share of more than 30 percent.
($1 = 0.9479 euros).
Global EV battery market share in Jan-Oct 2024: CATL 36.8%, BYD 16.8%
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