China’s CATL has begun construction of a new lithium iron phosphate (LFP) battery plant in Spain, marking a further expansion of its European manufacturing footprint as demand for electric vehicle batteries grows.
The factory, developed through a 50-50 joint venture with European automaker Stellantis, is being built in Figueruelas, in Spain’s northeastern Aragon region, and is scheduled to start production by late 2026, Reuters reported.
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About 2,000 Chinese workers are set to take part in the construction phase, followed by the recruitment and training of around 3,000 Spanish employees once the facility becomes operational, union representatives said. Some Chinese technicians and managers have already arrived in Figueruelas, with several hundred more expected by the end of this year and the total approaching 2,000 by the end of next year, CATL told Reuters.
“We don’t know this technology, these components — we’ve never made them before,” said David Romeral, director general of CAAR Aragon, a regional automotive industry network. “They’re years ahead of us. All we can do is watch and learn.”
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The plant has secured more than 300 million euros in European Union funding and represents a total investment of about 4.04 billion euros ($4.68 billion), according to CATL. With an annual production capacity of up to 50 gigawatt-hours (GWh), the site will primarily supply batteries to Stellantis, which plans to integrate production at its Zaragoza facility.
The Spanish project will become CATL’s third battery factory in Europe, following earlier investments in Germany and Hungary, as the Chinese battery maker accelerates localisation of its supply chain for the European EV market.