The Chinese battery giant Contemporary Amperex Technology (CATL) and automaker Stellantis have officially commenced the construction of a new LFP battery plant in Aragón, Spain. Once completed, it will become the largest battery production facility in the country.
CATL and Stellantis are investing €4.1 billion ($4.75 billion) in the joint venture to expand Stellantis’s LFP battery portfolio in Europe. The plant is scheduled to begin operations by late 2026 and aims to achieve an annual capacity of up to 50 gigawatt-hours for electric vehicles.
Announced last year, the agreement represents one of the biggest Chinese industrial investments in Spain.
At Wednesday’s ceremony, Spain’s Minister of Industry, Trade, and Tourism, Jordi Hereu, described the project as a pivotal step in the country’s clean energy transition and industrial modernization.
He emphasized that the venture demonstrates the strong mutual trust between the Spanish and Chinese partners while highlighting Spain’s growing importance in Europe’s push toward electrification.
Chinese Ambassador to Spain Yao Jing emphasized that the facility holds landmark importance, not just in collaboration but also in joint dedication by China and Spain to advancing green transition, industrial modernization, and future growth. He added that China is ready to share technology and opportunities with Spain to support the progress of local industries.
South Korean market research firm SNE Research reported that from January to August 2025, global battery output for electric and hybrid vehicles reached 691.3 gigawatt-hours, marking a 34.9% increase compared to the previous year. CATL maintained its lead in the sector, expanding production by 31.9% to 254.5 gigawatt-hours and securing a 37% share of the market.
Reuters reported that local unions estimate around 2,000 Chinese workers will take part in constructing the plant, while the project aims to hire and train approximately 3,000 Spanish employees as operations progress. CATL noted that some Chinese engineers and managers are already working in Figueruelas, with several hundred more expected to arrive by the end of this year and nearly 2,000 by the close of next year.
The development comes at a time when European automotive industry groups are pushing for stricter local-content requirements in both vehicle and battery manufacturing to help protect domestic producers from Chinese rivals.
Meanwhile, the European Commission is drafting a new set of measures to strengthen the bloc’s automotive sector.
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