Multinational automaker Stellantis may choose Spain for its next European electric vehicle battery factory with its Chinese partner CATL, La Tribuna de Automoción reports.
Report highlights
The local report suggests that Spain is currently the strongest candidate for Europe’s fourth battery factory, following the developments in Douvrin, Kaiserslautern, and Termoli.
Stellantis is apparently considering the Municipality of Zaragoza as the most probable location for its upcoming battery factory in the region.
The new battery factory will house the production of CATL’s LFP cells for Stellantis’ electric vehicles, which was announced at the end of November 2023. The two major players inked the Memorandum of Understanding that commits CATL to supply the automaker with its LFP battery cells and modules.
The project is expected to have an initial investment of 2.5 billion euros, with potential additional central and regional government aid. A good offer can significantly attract Stellantis to actually pursue Spain for the proposed project.
According to Electrive, The Ministry of Industry and Tourism plans to allocate 55.87 million euros for the Stellantis battery factory in Spain.
Why Spain?
Stellantis has already erected three vehicle factories in three Spanish municipalities, including Madrid, Vigo, and Zaragoza. It aims to manufacture STLA-based electric vehicles in the Vigo and Zaragoza factories.
To be specific, the Vigo factory will manage the production of Citroën vehicles. Stellantis plans to roll out the new €23,300 Citroën e-C3 as early as 2024, which will use LFP battery cells.
Therefore, it would not be surprising if the legacy OEM chose Spain for the new battery factory.
Notably, Stellantis also previously announced plans to erect new EV factories in France, Germany, and Italy. As of now, Stellantis and the Government of Pedro Sánchez are still reportedly undergoing negotiations for the potential LFP battery cell factory.
