CATL and Stellantis Break Ground on What Will Be Europe’s Largest EV Battery Plant

Stellantis, Europe’s second-largest automaker, and Chinese battery giant CATL have begun construction on a €4.1-billion battery plant in northeastern Spain—an investment expected to create roughly 4,000 jobs.

The two companies held a groundbreaking ceremony on Wednesday for the new lithium-iron-phosphate (LFP) battery facility in the Aragón region. The project, first announced last year, marks one of the largest Chinese industrial investments ever made in Spain.

Leaders of the joint venture said the plant will generate around 4,000 jobs once operational. Earlier media reports suggested that as many as 2,000 Chinese workers might be brought in for construction, raising concerns about local labor displacement. However, JV CEO Andy Wu declined to confirm any such figures, noting that staffing details remain undecided as subcontractors are still being selected.

The plant will operate entirely on renewable energy and is scheduled to come online by the end of 2026. Once ramped up, it’s expected to produce 50 GWh of LFP batteries annually for electric vehicles across Europe.

Spain’s Minister of Industry, Trade and Tourism, Jordi Hereu, called the groundbreaking “a strategic milestone” for the country’s energy transition and industrial modernization. Speaking at the event, he emphasized that the partnership reflects a high degree of trust between Spanish and Chinese companies, and highlighted Spain’s growing importance in Europe’s electrification efforts, according to Xinhua.

Compared with some other EU countries, Spain has been relatively open to Chinese investment. More than half of its electricity generation last year came from renewable sources, and the nation relies heavily on imported critical minerals, solar panels, and green technologies as it accelerates its shift away from fossil fuels.

China’s influence over these supply chains is substantial. CATL—the Chinese partner in the joint venture—is the world’s largest EV battery manufacturer, supplying companies such as Tesla, BMW, and Volkswagen. The firm continues to broaden its presence in Europe, with production already underway in Erfurt, Germany, and full-scale output in Debrecen, Hungary, expected soon.

Beyond manufacturing, CATL plays a major role in the global EV supply chain through investments in lithium, nickel, and cobalt mining both in China and abroad, including projects in Indonesia and Bolivia.