China's CATL to build US$4.3 billion EV battery plant in Spain with Fiat owner Stellantis
China's Contemporary Amperex Technology (CATL), the largest maker of batteries for electric vehicles (EVs), is building its third plant in Europe through a joint venture with Fiat owner Stellantis, stepping up its overseas expansion to overcome higher tariffs.
The parties have agreed to spend €4.1 billion (US$4.3 billion) to build the factory in Zaragoza in northeastern Spain with a capacity to produce 50 gigawatt-hours (GWh) of batteries annually, according to a statement. One GWh can supply to 13,000 EVs with a driving range of 500km.
The first phase of the new factory will be operational in 2026, adding to its existing facilities in Germany and Hungary. The joint venture was made public two months after the European Union (EU) voted to impose additional tariffs of up to 35 per cent on Chinese-built pure electric cars after an anti-subsidy probe. CATL counts Tesla and BMW among its major customers.
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"The joint venture has taken our cooperation with Stellantis to new heights," founder and chairman Robin Zeng Yuqun said in the statement late Tuesday. "Our cutting-edge battery technology and outstanding operation know-how, combined with Stellantis' decades-long experience in running business locally, will ensure a major success story."
Billionaire Robin Zeng, founder and chairman of CATL, speaks during an interview in Ningde, Fujian province on November 7. Photo: Reuters alt=Billionaire Robin Zeng, founder and chairman of CATL, speaks during an interview in Ningde, Fujian province on November 7. Photo: Reuters>
The venture in Spain will make lithium iron phosphate (LFP) batteries for affordable EVs, crossovers and sport-utility vehicles with an intermediate range. Stellantis, which also owns Jeep and Alfa Romeo, said the joint venture received support from the Spanish authorities to build the plant, without elaborating.
The additional EU tariffs are on top of the standard 10 per cent levy on pure EVs made in China. Ten EU members supported the October decision, while five members including Germany and Hungary opposed it. Another 12, including Spain and Belgium, abstained from voting.
Following the vote, the Chinese government summoned major automotive firms and asked them to refrain from making major investments in EU countries that backed the punitive tariffs.
