Stellantis and CATL Will Establish an LFP Battery Factory in Europe!

Stellantis has taken an important step in the production of batteries for electric cars. Cooperating with the Chinese battery giant CATL, Stellantis decided to establish an LFP (Lithium Iron Phosphate) battery factory in Europe. This factory will ensure that LFP batteries, which are advantageous in terms of both cost and safety, become widespread in Europe.

What is an LFP Battery and Why is it Important?

LFP battery is a type of battery composed of lithium iron phosphate compound. This battery is cheaper, longer lasting and more stable than nickel-based batteries. LFP battery also minimizes risks such as overheating, short circuit or fire. Although the LFP battery is lower than nickel-based batteries in terms of battery density, this difference is decreasing with the development of technology.

LFP battery is a very popular type of battery, especially in China. China is a country that holds 80% of the battery industry. In Europe, LFP battery production is almost non-existent. Therefore, the collaboration between Stellantis and CATL is a very important development for the production and supply of LFP batteries in Europe.

Agreement between Stellantis and CATL

Stellantis and CATL signed an agreement last Tuesday. This agreement forms the basis of the LFP battery factory that Stellantis plans to establish in Europe. This factory will be the fourth factory established by Stellantis to meet the battery needs for electric cars. Stellantis had previously established NMC (Nickel Manganese Cobalt) battery factories in Germany, France and Italy in cooperation with Mercedes and TotalEnergies.

Details of Stellantis and CATL's agreement have not yet been clarified. No decision has been made on where and how big the factory will be. Stellantis Purchasing Manager Maxime Picat said that they will make a statement on this issue in a few months. Picat also stated that the factory will be operational after 3 years at the earliest.

Which Cars Have LFP Battery?

Stellantis plans to use LFP batteries in vehicles of all body types. For example, the Citroën e-C3 model will be available with LFP batteries as of next year. Stellantis will continue to use NMC batteries in more expensive models.

Apart from Stellantis, brands such as Tesla, Volkswagen and Hyundai also prefer LFP batteries. These brands want to benefit from the cost and safety advantages of LFP batteries. LFP batteries will make electric cars more accessible and reliable.