Stellantis, Chinese firm CATL plan $4bn battery plant in Spain

Automotive big Stellantis and Chinese language producer CATL stated Tuesday they might construct a $4.3-billion manufacturing facility to make electrical automobile batteries in Spain, the newest bid to spice up Europe’s troubled EV drive.

They stated they purpose to start out manufacturing by the top of 2026 on the web site within the northern metropolis of Zaragoza.

It “could reach up to 50 GWh capacity, subject to the evolution of the electrical market in Europe and continued support from authorities in Spain and the European Union”, the businesses stated in an announcement.

The 2 companies signed an settlement in 2023 to supply battery components for the manufacture of electrical automobiles in Europe.

CATL, which has obtained strong monetary assist from Beijing, has launched two different European factories, in Germany and Hungary.

Its chief government Robin Zeng met late on Monday with Spain’s Prime Minister Pedro Sanchez, forward of the announcement of the 4.1-billion-euro deal.

In a message on X, the Socialist premier thanked the presidents of the 2 companies for his or her “firm commitment” to Spain, including he was “very pleased”.

Throughout a go to to China in September, Sanchez urged the European Union to “reconsider” a plan to impose tariffs on Chinese language electrical vehicles, calling for a “compromise” between the financial powerhouses.

Spanish Financial system Minister Carlos Cuerpo referred to as the announcement “excellent news for industry and employment in our country”.

Spain has been enjoying a rising function in European automobile manufacturing, assembling 1.87 million vehicles in 2023—the second-biggest producer within the continent after Germany, in response to the European Car Producers’ Affiliation.

Bumpy patch for carmakers

The announcement comes at a turbulent time within the automotive trade as nations search to change to low-carbon electrical automobiles to curb the local weather disaster.

Sweden’s financially strained electrical automotive battery maker Northvolt final month introduced the resignation of its chief government Peter Carlsson.

That got here hours after the corporate sought chapter safety in america.

The corporate stated in September it was slashing 1,600 jobs—1 / 4 of its workers—and suspending the growth of its web site because it struggled with strained funds and a slowdown in demand.

The corporate had been seen as a cornerstone of European makes an attempt to meet up with China and america within the manufacturing of battery cells, an important part of lower-emission vehicles.

Stellantis’s former chief government Carlos Tavares additionally resigned on December 1, with the corporate signaling variations over the way to save the group’s slumping earnings.

Like different auto teams, Stellantis has blamed competitors from China and the troublesome transition to electrical vehicles for a lot of its troubles.

It introduced on November 26 that it was closing a manufacturing facility at Luton in England with the lack of 1,100 jobs.

‘Excessive-quality’ EVs

Based in 2011 in Ningde, jap China, CATL produces greater than a 3rd of the electrical automobile batteries bought on the planet.

Italian-US-French firm Stellantis produces 14 manufacturers together with Fiat, Peugeot-Citroen, Opel, Maserati, Chrysler, Ram and Jeep.

The Zaragoza plant will make lithium iron phosphate (LFP) batteries, that are cheaper to supply however much less highly effective in contrast with nickel manganese cobalt (NMC) ones, the opposite present mainstream expertise.

The businesses stated the manufacturing facility, which shall be designed to be fully carbon neutralwould allow Stellantis “to offer more high-quality, durable and affordable battery-electric passenger cars, crossovers and SUVs”.

Stellantis chairman John Elkann stated within the assertion that the enterprise “will bring innovative battery production to a manufacturing site that is already a leader in clean and renewable energy”.

Zeng stated CATL’s purpose was “to make zero-carbon technology accessible across the globe”.

The deal is predicted to be closed in 2025, topic to regulation.

© 2024 AFP