Chinese battery company CATL and automaker Stellantis will form a a joint investment to build a battery factory in Spain worth up to €4.1 billion ($4.3 billion).

The facility is set to begin production of lithium iron phosphate (LFP) batteries by the end of 2026 at Stellantis’ site in Zaragoza, Spain.

“I believe our cutting-edge battery technology and outstanding operation knowhow combined with Stellantis’ decades-long experience in running business locally in Zaragoza will ensure a major success story in the industry,” said Robin Zeng, Chairman and CEO of CATL, in a statement.

The statement said the 50-50 joint venture will enhance Stellantis’ ability to deliver “more high-quality, durable, and affordable battery-electric passenger cars, crossovers, and SUVs.”

Once operational, the plant could reach a capacity of up to 50 gigawatt-hours (GWh), making it one of the largest battery facilities in Europe.

CATL, the world’s largest electric-vehicle battery manufacturer, already operates plants in Germany and Hungary.

Stellantis, headquartered in Europe, designs and manufactures automobiles under 14 different brands, including Alfa Romeo, Chrysler, Citroën, Jeep, Fiat, and Peugeot.

Designed to be completely carbon neutral, the battery plant will also contribute to Stellantis’ goal of becoming a “carbon net zero corporation” by 2038.

By 2030, Stellantis aims for 100-percent battery-electric vehicle sales for passenger cars in Europe and 50 percent for cars and light trucks in the United States.

The companies noted that the project’s scope remains “subject to the evolution of the electric vehicle market in Europe and continued support from authorities in Spain and the European Union.”