Alexandre
Stellantis recently announced a major partnership with CATL for the construction of a lithium-iron-phosphate (LFP) battery plant in Zaragoza, Spain. A choice that raises a number of questions, not least why Spain, rather than France, Germany or Italy, countries that also have battery plant projects. To understand this decision, we put the question directly to Stellantis.
A partnership with CATL
The choice of CATL is not an insignificant one. This Chinese company has proven expertise in LFP battery technology, which is becoming increasingly popular for its cost-effectiveness. Unlike traditional lithium-ion batteries, LFP batteries are more economical to produceand do not require rare materials such as cobalt or nickel. This technological choice enables Stellantis to offer more affordable electric vehicles, especially in segments B and C, where competitive pricing is essential.
Why Spain?
The answer to this question has a lot to do with industrial logic. Stellantis explains that it was CATL that selected the Zaragoza site. because of its proximity to the production site for future cars from Stellantis on the STLA Small platform, like the forthcoming Peugeot e208 and e2008, equipped with LFP batteries. This geographical proximity between vehicle production and battery manufacturing enables optimize logistics costs and production. Not to mention that, in Spain, Stellantis benefits from relatively lower labor costs than in other European countries, making the production of segment B and C electric vehicles more competitive.
The situation in Italy and Germany
Battery manufacturing projects in Italy and Germany, including the Termoli plant with ACC (Automotive Cells Company), are currently on hold. According to Stellantis, ACC, which produces NMC lithium-ion batteries (nickel-manganese-cobalt) in France, has not yet found a solution for producing low-cost batteries suitable for consumer vehicles. The partnership with CATL is therefore part of a strategy to diversify battery technologies: LFP for more affordable vehicles and NMC for top-of-the-range models.
Both Italy and Germany are waiting for answers concerning the project with ACC, which will be given in the first half of 2025.
The choice of Spain as the location for an EV battery plant is anything but a surprise.
Spain is the most competitive industrial base in Europe for the former PSA, with major sites such as Zaragoza (former GM), Vigo (former PSA), Madrid (former PSA) and the Mangualde site in Portugal (former PSA).
Most models in the B and C entry segments are made there: 208/2008, Corsa, Ypsilon, C4/C4X, Partner/Rifter LCVs, Berlingo, Opel Combo, and some Fiat Doblo models (the latter are produced more in Algeria at Oran).
All these models are available in electric versions, and their successors are not intended to be produced elsewhere.
This decision makes perfect industrial sense.
The choice of Italy has always been considered "astonishing" in European automotive circles; it is an essentially political decision to try to reassure Italian partners and interlocutors (Italian political leaders and trade unions) in a context of sharp decline in Italian automotive production over the last 10/15 years.