2024-12-10 08:38:00
Stellantis and CATL will invest 4.1 billion euros to build the largest battery plant in Spain, which will be built in Zaragoza.Both companies made the planned investment official on Tuesday, which finally exceeded 3 billion euros, as announced by this newspaper last week. The agreement was signed after the approval of the Chinese executive of Xi Jinping, the last one left to say “yes, I want it”, who delayed his decision due to the ongoing tariff conflict with the European Union, due to the extra tariffs imposed on electric vehicles produced in China. It is expected that the gigafactory, which will have a production capacity of approximately 50 GWh of batteries with LFP (lithium iron phosphate) technology, will enter production in 2026.
Achieving this maximum capacity will depend on the evolution of the electric vehicle market in Europe, currently stagnant, and on the “continued support of the Spanish authorities and the European Union”, Stellantis indicated in a joint statement with CATL, with which it had had signed a memorandum of understanding in November 2023.
The agreement was possible after more than a year of negotiations between Stellantis and the executive, which granted the Luxembourg manufacturer 357.8 million euros in subsidies from the Perte Electric and Connected Vehicle (Perte VEC) and the Perte Decarbonisation, money that has been distributed between the three Stellantis factories in Spain, particularly in Vigo and Zaragoza, which are the ones whose industrial future is in the middle. and clearer in the long term. That sum of money was enough for the company to end up choosing Spain for a strategic investment,which will surely arouse the jealousy of Italy,a country that has embarked on a crusade against the former CEO of Stellantis,carlos Tavares,who ended to surprisingly resign last year. year.
This departure aroused concern in the Spanish government as Tavares had previously met with Spanish President Pedro Sánchez to finish settling the latest issues and definitively formalize the investment for the construction of the battery plant. But those ghosts were soon dispelled by the phone call that John Elkann, president of Stellantis, had with Sánchez, just a day after Tavares’ farewell.
moreover, on the eve of the signing of this pact, this Monday Sánchez met, accompanied by the Minister of Industry and Tourism, Jordi Hereu, the president and CEO of CATL, Robin Zeng. This investment has thus taken definitive shape, which will give impetus to Spanish automotive production, thus guaranteeing another large battery plant, in addition to the one that the Volkswagen group is building in Sagunto (Valencia); the one that the Chinese company Envision intends to build, in Navalmoral de la Mata; and InoBat wants to build it in Valladolid. That of Stellantis is to date the largest investment in a battery plant in Spain, ahead of that of Volkswagen, which will have around 40 GWh of production capacity, even though this could be increased to 60 GWh in a subsequent expansion.
“CATL’s goal is to make zero-carbon technology accessible around the world, and we look forward to collaborating with our partners globally through more innovative cooperation models,” Zeng said in the statement made public Tuesday. “Stellantis is committed to a decarbonized future, encompassing all available advanced battery technologies, to offer our customers competitive electric vehicle products,” Elkann emphasized. LFP technology is seen by the industry as the fastest way to make electric vehicles more economical, as it is indeed a technology with a lower energy density than conventional NMC, making them less autonomous, but more accessible in price.
The construction of the gigafactory, together with the future installation of the STLA Small production platform in the Vigo and Zaragoza factories, which will involve an investment of approximately 900 million euros, will mean guaranteeing employment in Stellantis’ national factories. This group was last year the largest car manufacturer in Spain, with more than one million units assembled between Vigo (the country’s largest factory), Zaragoza and Madrid. The latter is awaiting its industrial future, since it is not expected, at least for the moment, that it will receive the STLA Small, which is the platform on which all the group’s future compact electric cars will be made.
The announcement of STLA Small will have to wait a little longer due to the conflict between Italy and Stellantis, a key country in the ownership of the car manufacturer, of which the Agnelli family is the main shareholder, with 14.87% of the shares . , through its investment division Exor. Italy’s anger is due to the collapse of production at the national Stellantis factories. According to the country’s unions, the activity of transalpine factories reduced by 41% between January and September, a dramatic figure for the Italian automotive sector which depends almost exclusively on Stellantis, owner of the country’s historic brands and its largest company national manufacturer. The main reason for this reduction is mainly due to a question of costs, as Stellantis prefers to produce in cheaper countries such as Morocco, Poland and even Spain, which has some of the most productive factories of the group.
How are government subsidies influencing the electric vehicle market in Spain adn broader Europe?
Title: Navigating the Future of Electric Vehicles in Europe: An interview with Industry Expert Dr. Elena Martinez
Time.news Editor (TNE): Good morning, Dr. Martinez, and thank you for joining us today. The recent declaration about Stellantis and CATL investing 4.1 billion euros to build the largest battery plant in Spain is quite momentous. What are your first impressions of this development?
dr. Elena Martinez (EM): Good morning! I’m thrilled to be here. This investment signifies a transformative shift for spain and Europe’s electric vehicle (EV) industry. With this gigafactory in Zaragoza, we are looking at a potential boost in local manufacturing, job creation, and a notable step towards reducing dependency on Asian imports for battery technology.
TNE: Certainly! The capacity of approximately 50 GWh with lithium iron phosphate technology is impressive. What advantages does this technology offer for electric vehicles?
EM: LFP technology is renowned for its thermal stability, long cycle life, and lower cost compared to other lithium-ion batteries. These characteristics make it a suitable choice for mass-market EVs, especially in Europe where there’s an increasing demand for affordable yet reliable electric vehicles. It also enhances safety,which is a huge concern amongst consumers.
TNE: The article mentions the approval from Chinese leaders being a significant milestone in this process. Can you explain the geopolitical implications of this investment?
EM: Absolutely. The tariff disputes between the EU and China have created a complex landscape for EV manufacturers. China’s approval indicates a willingness to cooperate, which could ease tensions and foster a more collaborative surroundings for future investments. This partnership can also serve as a model for how other regions might navigate similar challenges in the evolving energy market.
TNE: You touched upon the stagnation of the electric vehicle market in Europe. What do you think needs to change to ensure the success of this plant and the growth of the EV sector as a whole?
EM: First and foremost, a robust consumer demand for electric vehicles is essential. This can be fueled by government incentives, clearer regulations on emissions, and increased public awareness of the environmental benefits.Furthermore, the ongoing support from both Spanish authorities and the European Union will be vital.Policies that facilitate charging infrastructure development and offer subsidies could significantly impact market dynamics.
TNE: The agreement was made possible after considerable subsidies from the Spanish government. How critical are these subsidies to the viability of such large-scale projects?
EM: Subsidies play a crucial role, especially when dealing with high upfront costs associated with technology development and infrastructure investment. they not only ease financial pressures on companies but also signal government commitment to innovation and sustainability. This financial support could keep Spain competitive in the global EV market, especially against countries with more established industries.
TNE: With Stellantis’ strategic investment in Spain,what might be the implications for Italy,notably in light of their feelings towards Carlos Tavares and his resignation?
EM: It’s a complex situation. Italy may feel threatened, especially as it has been a significant player in the automotive industry historically. The competitive landscape is shifting, and there may be internal pressures to enhance their investment climate. This could lead to policy changes aimed at retaining and attracting manufacturing. It might also push Italian companies to innovate more rapidly to remain competitive.
TNE: Fascinating insights, Dr. Martinez. As we look ahead, what are your predictions for the future of electric vehicle manufacturing in Europe?
EM: The landscape is rapidly evolving. I anticipate we will see more collaborations similar to the Stellantis and CATL partnership. Innovation in battery technology will drive down costs and enhance performance, possibly leading to an increase in EV adoption. However, it is crucial that regulatory frameworks adapt to support both manufacturers and consumers alike, ensuring an ecosystem that promotes sustainable growth.
TNE: Thank you, Dr.Martinez, for sharing your expertise with us today. It’s clear this is a pivotal moment for the automotive industry in Europe, especially concerning sustainability and technology.
EM: Thank you for having me! I look forward to seeing how this investment will shape the future of electric mobility in Europe.
