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Stellantis (STLA), the automaker behind Jeep, Chrysler, and Ram, plans to invest up to $4.3 billion to add a new electric vehicle battery plant to its portfolio.
The European company said it would invest up to that amount to launch a new joint venture with CATL, the Chinese firm that has become the world’s largest maker of batteries for EVs, that will build a lithium-ion phosphate battery plant. The facility will help Stellantis offer more affordable electric cars and SUVs, the company said in a statement.
In October, Spain granted Stellantis a $146 million subsidy to build the factory near the city of Zaragoza. The automaker already has a car plant in Zaragoza, where it makes the electric Peugeot e-208, the Opel Corsa-e, and the Lancia Ypsilon.
Stellantis has said the project would create some 3,000 jobs and require almost €2.5 billion ($2.6 billion). The joint venture, which will be owned evenly by the two firms, is expected to close next year, pending regulatory approval.
“This important joint venture with our partner CATL will bring innovative battery production to a manufacturing site that is already a leader in clean and renewable energy, helping drive a 360-degree sustainable approach,” Stellantis chair John Elkann said in a statement.
CATL CEO Robin Zheng said that the joint venture has taken the firm’s partnership with Stellantis to “new heights.” Besides the potential plant in Spain, CATL already operates a battery plant in Germany and Hungary.
Stellantis’ progress with the plant comes as the company aims to stick with its plans to reach net-zero carbon emissions by 2038 and boost its EV business as sales slow. The automaker’s net revenue fell 27% last quarter to $35.8 billion after sales flagged in North America and Europe.
Earlier this month, Carlos Tavares resigned as chief executive after a series of conflicts with Stellantis’ board and as the automaker faces legal battles with union auto workers. In the past, Tavares blamed his “arrogant” mistakes for Stellantis’ missteps, which cost him the confidence of dealers and caused issues with executives, as CNBC reports.
Elkann is leading the board’s search for Tavares’ replacement, which will be announced during the first half of 2025. After a management shakeup initiated by Tavares in October, the company has continued to fill out gaps in its ranks.
Timothy Kuniskis, who retired in June, will return to run Ram, while Chris Feuell, who previously led Ram and Chrysler, will now lead Alfa Romeo’s North American operations in addition to Chrysler.