Stellantis and CATL join forces to produce next-generation batteries at a plant in Zaragoza. The future of the Termoli gigafactory remains uncertain
While Stellantis’ supplier workers can breathe a sigh of relief, thanks to the 12-month extension of the Trasnova contract, the automotive giant has reached a €4 billion deal with the Chinese group CATL. The goal? To build a European lithium iron phosphate battery plant in Zaragoza, Spain. Production of the batteries will begin in 2026, while the decision regarding the Termoli gigafactory is postponed until 2025.
What does the joint venture with China entail?
Designed to be completely carbon-neutral, the European plant planned by Stellantis and CATL could reach a capacity of 50 GWh, depending on the evolution of the electric vehicle market in Europe and support from the European Union. This 50-50 joint venture would allow Stellantis to offer “high-quality, durable, and affordable battery electric vehicles, crossovers, and SUVs in the B and C segments with intermediate ranges,” according to the company’s statement.
Elkann and Zeng’s promises
“Stellantis is committed to achieving a decarbonized future through the use of all advanced battery technologies available, to offer our customers competitive products for electric vehicles,” said Stellantis Chairman John Elkann.
“This significant joint venture with CATL will allow us to produce innovative batteries in a facility already leading in clean and renewable energy, contributing to a 360-degree sustainable approach.” The agreement between the two companies dates back to November 2023, when Stellantis and CATL signed a non-binding Memorandum of Understanding (MoU) “for the local supply of LFP battery cells and modules for the production of electric vehicles in Europe, and established a long-term collaboration on two strategic fronts.”
“CATL’s goal is to make zero-emission carbon technology accessible worldwide, and we are ready to collaborate with our global partners through increasingly innovative cooperation models,” said Robin Zeng, President and CEO of CATL.
Characteristics of the plant in Spain
Chinese CATL is already present in Europe with two plants in Germany and Hungary, where it brought its cutting-edge battery production technology. In addition to these, the Spanish plant is intended to contribute both to achieving customers’ climate goals and to promoting electric mobility and the energy transition in Europe. Regarding the technology to be used in Zaragoza, the plant will adopt a dual-chemistry approach—nickel manganese cobalt (NMC) and lithium iron phosphate (LFP)—to introduce innovative technologies for cells and battery packs.
What will happen to Termoli’s gigafactory?
But while Stellantis has invested in Spain, what becomes of the promised gigafactory in Termoli, Italy’s largest industrial hub for engine manufacturing? Termoli currently employs 2,000 workers, but the future of Acc, the Stellantis joint venture with Mercedes and TotalEnergies, is uncertain and extends to the first half of 2025. And then what? What will happen to the workers in the sector, already dealing with a solidarity contract? Italy’s Minister for Made in Italy, Adolfo Urso, commented on the issue, stating that “we are determined to address and resolve this dispute, showing that Italy can once again assert industrial leadership, clearly by changing European rules.” An audition for John Elkann in the Commission is awaited.
