Stellantis and Chinese battery maker CATL to invest 4.1 billion euros in Europe’s largest electric vehicle battery factory in Spain
Stellantis and CATL will invest 4.1 billion euros to build one of Europe’s largest electric vehicle battery factories in Spain. The joint venture in Zaragoza, Spain, is expected to start production by the end of 2026 and has the potential to reach a capacity of 50 gigawatt hours, enough to power 700,000 cars a day.
The plant will supply lithium iron phosphate batteries for affordable small and medium-sized cars. The move is part of Stellantis’ effort to boost its electric vehicle production in the region.
The plant’s capacity will depend on the evolution of the EV market in the region and support from authorities. Europe has been seeking to attract EV battery makers to build factories in the region to reduce its reliance on Asia and win a green subsidies race with the United States.
The decision to choose Spain comes after the country abstained on a vote to impose additional EU tariffs on Chinese EV imports. This, along with the country’s established auto industry, green energy, and lower labor costs, made it an attractive location for investment.
The plant is expected to be one of the largest of its kind in Europe, with a capacity to power 700,000 cars a day. The project is a key part of Stellantis’ objective to boost EV production at its plants in the Aragon and Galicia regions.