China’s CATL and Stellantis break ground on $4.8B Spain battery plant

Chinese EV battery maker CATL and Europe’s automaker, Stellantis, have broken ground on Spain’s $4.8 billion EV battery plant. The factory in the northeastern Spanish region of Aragon is expected to create nearly 4,000 jobs, with media reports suggesting that 2,000 Chinese workers are already on site.

The joint venture’s CEO, Andy Wu, and executives from the joint project declined to confirm the alleged numbers, stating that the final figures have not yet been determined. Wu also said that the joint company is still seeking a subcontractor. 

The executives announced on Wednesday that the new plant will operate solely on renewable energy, with production scheduled to start by the end of next year. The projected annual output is approximately 50 GWh (gigawatt-hours) of LFP batteries, which will be supplied to EV makers across Europe.  

Hereu says partnership reflects strong China-Spain tie

Jordi Hereu, the Spanish Minister of Industry, Trade and Tourism, described the groundbreaking event as a strategic milestone for the country’s industrial modernization and energy transition. He pointed out that the partnership reflects the strong confidence between Chinese and Spanish companies. It also emphasizes Spain’s role and effort in the electrification of Europe. 

The country was generating more than 50% of its electricity from renewable sources in 2024 and relies on imported raw materials from other nations, noted the Minister. For instance, Spain needs imported green technologies to accelerate its transition away from fossil fuels, and China has substantial influence over these materials. 

CATL, the Chinese partner in this joint venture, is arguably the world’s largest EV battery maker. Its customers reportedly include Volkswagen, Tesla, and BMW. The company’s existing production in Germany has been running since 2022, and it is seeking to expand further in Europe. Full-scale production at CATL’s Debrecen, Hungary, plant is expected to kick off operations in the coming months. 

The company is also significantly involved in the global EV batteries supply chain through large-scale mining. CATL has invested heavily in the mining of cobalt, lithium, and nickel in China. It also has similar projects abroad, such as those in Bolivia and Indonesia.

CATL plans to train 4000 Spanish workers

China’s ambassador to Spain and Chinese executives reassured an audience of Spanish ministers, reporters, and officials that China is committed to training Spanish workers. They also disclosed that China is ready to share technologies to support the energy transition in Europe. 

The Director of Public Affairs at CATL Europe, Wenpei Lin, stated that the production of EV batteries requires advanced technology and operational expertise accumulated over many years. She added that her company’s mission is to make this technology accessible to everyone. 

“We don’t know this technology, these components – we’ve never made them before…They’re years ahead of us. All we can do is watch and learn.” 

–David Romeral, Director General of CAAR Aragon

Meanwhile, auto industry representatives and unions pointed out that Spain lacks the technical know-how for producing EV batteries. However, Europe’s auto associations are pushing for stricter requirements on the sourcing of components locally, partly to protect the region’s companies from their Chinese rivals. The European Commission is also preparing to introduce a new set of measures to strengthen the sector.

Hereu said technology transfer is fundamental to the project. He emphasized that the Spanish side needs to learn from their Chinese counterparts, who are knowledgeable in this area. Hereu also added that Spain is open and ready to work with all countries of the world, especially China. 

Stellantis shipping manager Roque Mangiron also noted that many countries that previously relied on German technology now depend on China. Mangiron stated that Spain will always be ready to provide labor. 

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