Stellantis, the maker of Jeep and Chinese battery giant CATL (Contemporary Amperex Technology) have announced plans to invest up to €4.1 billion ($4.33 billion) to build a new plant in Zaragoza, Spain, focused on developing low-cost EV batteries.
The facility will produce lithium-iron-phosphate (LFP) batteries, which are cheaper and safer to manufacture than traditional nickel, cobalt, and manganese-based batteries. However, LFP batteries typically offer a shorter driving range due to their lower energy density. While LFP batteries are widely used in China, the growing demand in Europe and North America has led automakers to set up production plants closer to their markets in an effort to reduce reliance on Chinese supplies. Additionally, manufacturers are working on improving the driving range of LFP-powered electric vehicles (EVs).
