Back to top

Image: Bigstock

Stellantis & CATL to Build EUR4.1B LFP Battery Plant in Spain

Read MoreHide Full Article

Stellantis N.V. (STLA - Free Report) and CATL have agreed to invest up to €4.1 billion to establish a joint venture for a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. This carbon-neutral facility will be developed in phases and is planned to begin production by late 2026. The plant’s capacity could reach up to 50 GWh, contingent on the evolution of Europe's electric market and ongoing support from Spanish and European Union authorities.

The 50-50 partnership aims to strengthen Stellantis’ LFP offerings in Europe, enabling the production of more affordable, durable and high-quality battery-electric vehicles (BEVs) across the B and C segments, including passenger cars, crossovers and SUVs.

In November 2023, Stellantis and CATL signed a non-binding memorandum of understanding to locally supply LFP battery cells and modules for EV production in Europe. This collaboration includes creating an advanced technology roadmap for Stellantis’ BEVs and identifying ways to enhance the battery value chain.

CATL will bring its state-of-the-art battery manufacturing expertise to Europe, building on its existing facilities in Germany and Hungary. The new Spanish plant will further support Europe’s e-mobility and climate goals while advancing the global energy transition.

Stellantis is pursuing a dual-chemistry battery strategy, using both lithium-ion nickel manganese cobalt and LFP technologies to cater to diverse customer needs. The automaker is also exploring innovative cell and pack designs as part of its plan to achieve carbon net-zero status across all scopes by 2038. The transaction is expected to close by 2025, pending regulatory approvals.

STLA’s Zacks Rank & Key Picks

Stellantis currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , Tesla, Inc. (TSLA - Free Report) and Blue Bird Corporation (BLBD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 75 cents and 88 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for TSLA’s 2024 sales suggests year-over-year growth of 2.97%. EPS estimates for 2024 have improved 22 cents in the past 60 days. EPS estimates for 2025 have improved 7 cents in the past seven days.

The Zacks Consensus Estimate for BLBD’s fiscal 2025 sales and earnings suggests year-over-year growth of 10.97% and 12.14%, respectively. EPS estimates for fiscal 2025 have improved 18 cents in the past 30 days.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in