Stellantis & CATL to Build EUR4.1B LFP Battery Plant in Spain

Stellantis N.V. STLA and CATL have agreed to invest up to €4.1 billion to establish a joint venture for a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. This carbon-neutral facility will be developed in phases and is planned to begin production by late 2026. The plant’s capacity could reach up to 50 GWh, contingent on the evolution of Europe's electric market and ongoing support from Spanish and European Union authorities.The 50-50 partnership aims to strengthen Stellantis’ LFP offerings in Europe, enabling the production of more affordable, durable and high-quality battery-electric vehicles (BEVs) across the B and C segments, including passenger cars, crossovers and SUVs.In November 2023, Stellantis and CATL signed a non-binding memorandum of understanding to locally supply LFP battery cells and modules for EV production in Europe. This collaboration includes creating an advanced technology roadmap for Stellantis’ BEVs and identifying ways to enhance the battery value chain.CATL will bring its state-of-the-art battery manufacturing expertise to Europe, building on its existing facilities in Germany and Hungary. The new Spanish plant will further support Europe’s e-mobility and climate goals while advancing the global energy transition.Stellantis is pursuing a dual-chemistry battery strategy, using both lithium-ion nickel manganese cobalt and LFP technologies to cater to diverse customer needs. The automaker is also exploring innovative cell and pack designs as part of its plan to achieve carbon net-zero status across all scopes by 2038. The transaction is expected to close by 2025, pending regulatory approvals.STLA’s Zacks Rank & Key PicksStellantis currently carries a Zacks Rank #5 (Strong Sell).Some better-ranked stocks in the auto space are Dorman Products, Inc. DORM, Tesla, Inc. TSLA and Blue Bird Corporation BLBD, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 75 cents and 88 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for TSLA’s 2024 sales suggests year-over-year growth of 2.97%. EPS estimates for 2024 have improved 22 cents in the past 60 days. EPS estimates for 2025 have improved 7 cents in the past seven days.The Zacks Consensus Estimate for BLBD’s fiscal 2025 sales and earnings suggests year-over-year growth of 10.97% and 12.14%, respectively. EPS estimates for fiscal 2025 have improved 18 cents in the past 30 days.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report Dorman Products, Inc. (DORM): Free Stock Analysis Report Blue Bird Corporation (BLBD): Free Stock Analysis Report Stellantis N.V. (STLA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks