 |
CATL |
[Alpha Biz= Reporter Kim Jisun] Chinese electric vehicle (EV) battery giant CATL and multinational automaker Stellantis, ranked fourth globally, have announced plans to establish a joint EV battery factory in northeastern Spain. Both companies have agreed to contribute equally (50% each) to this venture, with a total investment of €4.1 billion (approximately 6.17 trillion KRW). The plant, which will produce lithium iron phosphate (LFP) batteries, is expected to have a capacity of up to 50 GWh, with production slated to begin by the end of 2026.
Robin Zeng, Chairman of CATL, expressed confidence that the combination of CATL’s advanced battery technology and Stellantis' decades of experience in the Saragossa region would create a successful partnership. He emphasized that the goal is to support carbon-zero technologies on a global scale.
Strategic Alliance for European Market Expansion
This joint venture marks a strategic move for both companies to strengthen their presence in the European market. For CATL, local battery production is crucial to avoid the European Union's (EU) "electric car bomb" tariffs, which are part of an effort to counter China's growing influence in the EV sector. On October 30, the European Commission (EC) announced it would impose additional tariffs on Chinese EVs, ranging from 7.8% to 35.3%, effectively raising the tariff on Chinese electric vehicles to between 17.8% and 45.3% over the next five years.
The new factory in Spain will be CATL’s third production base in Europe. CATL already operates an LFP battery plant in Thuringia, Germany, with an annual production capacity of 14 GWh, and it is building another facility in Hungary with a much larger capacity of 100 GWh, which is expected to start production next year. This expansion helps CATL secure a strong foothold in Europe, aligning with its strategy to meet rising demand for EV batteries while navigating the new tariff landscape.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
