Stellantis-CATL JV to bolster Europe’s LFP build out

Stellantis and CATL have confirmed a €4.1 billion ($4.3 billion) investment to produce lithium iron phosphate (LFP) cells in Spain, furthering Europe’s growing LFP capacity.

The two companies hadannounced a memorandum of understandingto build a European LFP gigafactory in November 2023. The facility is expected to begin production by the end of 2026 and could reach a capacity of up to 50 gigawatt hours (GWh), as well as being carbon neutral, according to the companies.

“Collaboration between the two has been rumoured for a while, but the revealed commitment solidifies the trend of major cell and automakers in Europe restrategising to incorporate LFP batteries into production plans,” said Evan Hartley, Research Manager at Benchmark.

“The 50 GWh facility also confirms a further potential downgrading of ACC within Stellantis’ battery plans, though the producer will remain key for NCM supply,” added Hartley.

How have European EV sales performed in 2024?

European EV sales fell by 2.9% year-to-date in October 2024, according to Rho Motion. There have also been a number ofgigafactory capacity cancellationsin the region this year.

“Europe is in a very precarious position right now where it has set itself tough goals for very high EV penetration which at current 2024 rates will not be met in future,” said Will Roberts, Automotive Research Lead at Rho Motion.

“Achieving the high EV penetration rates seen in Norway and China is going to require European governments – both national and the EU – to support the industry,” added Roberts.

Stellantis aims for 100% of its European passenger car sales to be electric in 2030. Offering more affordable EVs will be essential to this and better enabled by lower cost LFP cells.

What is the outlook for LFP in Europe?

By 2030, Europe is forecast to have 213 GWh of LFP capacity, according to BenchmarkGigafactory Assessment.

What role do Chinese companies play in Europe’s LFP supply?

Europe’s more open relations with China – relative to the US – mean Chinese companies account for a significant amount of the region’s LFP projects.

Be a part of the conversations shaping the future of Europe’s energy landscape by attending Giga Europe 2025.

Set across two days, Giga Europe is the region’s premier event for energy transition supply chain stakeholders, sharing expert insights from mine to market.

Secure your tickets here and join uson 18-19 March at Autoworld, Brussels – Super Early Bird saving expires December 20th.

Related Content

Global EV sales remain up YTD at 23% following 1.9 million EVs sold in October 2025

Benchmark Mineral Intelligence, specialising in EV supply chain research and insights, reports that 1.9 million electric vehicles were sold globally in October 2025. Rho Motion Data Manager, Charles Lester, commented: “Global EV sales reach 1.9 million units in October 2025, marking a 23% increase year-to-date. Europe led regional growth with a 36% year-on-year increase, driven […]

EV China

Inobat’s planned Spanish gigafactory gains state support

Slovakian cell developer Inobat has secured state support for its planned gigafactory in Valladolid, Spain. The support consists of a EUR 53.8m ($63.3m) grant and EUR 456,000 ($537,000) loan funded by the EU’s Recovery and Resilience Facility. This project brings Spain’s gigafactory pipeline to six facilities, though the country does not yet have any operational […]

Batteries Data Visualisation

Vulcan Energy signs lithium hydroxide offtake with Glencore

Vulcan Energy Resources, an Australian DLE (direct lithium extraction) developer operating in Europe, has signed an eight-year offtake agreement with commodity trader Glencore. Under this agreement Glencore will take 40,000 tonnes of lithium hydroxide (35,200 tonnes LCE) over an eight-year period starting from when Vulcan Energy enters commercial production, towards the end of the decade. […]

Critical Minerals DLE

North America sees LFP production capacity pipeline grow, driven by the BESS market

Since January 2025, 108GWh of LFP production capacity has been announced in North America through to 2030, bringing the total to 281GWh. These announcements have been driven by the increasing importance of the BESS industry in the US, as tax credits for EVs have been phased out. How is future capacity changing? The new capacity […]

Batteries BESS

Benchmark launches 314Ah LFP BESS price amid global storage market surge

Benchmark Mineral Intelligence today announced the commercial launch of its new 314Ah lithium iron phosphate (LFP) cell price for energy storage applications. The announcement comes as global LFP battery cell prices show signs of recovery, following a marked rebound in lithium carbonate costs and tightening supply conditions across the battery materials market. Benchmark’s Head of […]

Batteries

CATL and Gotion secure reserve approvals as Jiangxi permitting deadline looms

Chinese authorities have approved reserve reports for two key lithium mines in Jiangxi province, bringing months of uncertainty over the outlook for the lithium-rich region’s mining sector closer to a conclusion. CATL’s Jianxiawo mine – which was suspended on 10 August following the expiration of its mining permit – is reported to have received reserve […]

Critical Minerals CATL

China delays rare earth export controls after US–China trade talks

China has postponed the implementation of its expanded rare earth export controls announced in early October following high-level US-China trade negotiations in South Korea this week. It marks a temporary easing in what had become an escalating front in the tit-for-tat US–China trade confrontation. The announcement follows extensive economic and trade consultations in Kuala Lumpur, […]

Critical Minerals China

CODELCO raise European copper cathode premium offers to record levels

CODELCO, the Chilean state-owned copper miner, has reportedly offered their European customers record premiums on copper cathodes at USD 325/t for 2026 – 39% higher than last year’s level – according to sources familiar with the matter and media reports. This follows on from news last week that Aurubis increased offers 38% for 2026, leaving […]

Copper Chile