CATL and Stellantis Invest €4.1bn to Build Major EV Battery Plant in Spain

StellantisDealroom has a profile for this one. Try Dealroom → and China’s CATL have formally launched Contemporary Star EnergyDealroom has a profile for this one. Try Dealroom → , a 50/50 joint venture that will develop a large-scale lithium iron phosphate (LFP) battery plant in Figueruelas, near Zaragoza. The project represents one of Europe’s largest investments in electric-vehicle battery manufacturing, with commitments of up to €4.1 billion and plans for production to begin at the end of 2026.

The joint venture aims to support Stellantis’ European electrification strategy while expanding CATL’s industrial footprint in the region. Located at Stellantis’ Zaragoza site, the plant is designed as a carbon-neutral facility with a yearly capacity of up to 50 GWh once fully ramped. Batteries produced there will equip Stellantis’ B- and C-segment electric models, strengthening the company’s internal supply chain for next-generation BEVs.

Spanish authorities have described the initiative as a significant industrial commitment at a time when Europe is seeking to reduce exposure to volatile global energy markets and secure critical technologies at home. The government has welcomed the investment as part of broader efforts to reindustrialise the country and anchor advanced manufacturing capacity locally.

The project, however, has also drawn scrutiny. Reports that CATL plans to deploy several thousand Chinese workers to construct and equip the plant have prompted debate in Spain about labour practices and the level of technology transfer. Contemporary Star Energy has said that initial teams from China will support installation and training, with the intention of hiring a substantial local workforce as operations scale.

Despite broader challenges in Europe’s battery sector—including insolvencies and project delays at several local competitors—the venture marks a continued expansion for CATL, which is also building major facilities in Hungary. According to filings, Contemporary Star Energy will contribute the majority of the investment required for the Spanish site. Employment is expected to reach around 4,000 people by 2030, when the plant targets full capacity.

Framed by both partners as a long-term commitment to Europe’s EV transition, the project is intended to strengthen the regional battery value chain and provide a stable source of LFP cells for Stellantis’ growing electric portfolio. Spain’s industry ministry has presented the factory as a step toward greater strategic autonomy in clean-technology manufacturing, emphasising cooperation rather than disengagement with global industry leaders.

Sources:
Contemporary Star Energy
Bloomberg
Reuters
euronews 
China Daily
CGTN

J.V.