Battery maker Contemporary Amperex Technology (SHE:300750), or CATL, and automaker Stellantis are planning to invest up to 4.1 billion euros in a lithium iron phosphate battery joint venture in Spain.

Production of up to 50 gigawatt-hours at the plant is planned to start by the end of 2026, according to company filings released Tuesday.

The transaction is expected to close in 2025, subject to customary regulatory conditions.

CATL shares climbed 1% in recent trade.