A battery manufacturing joint venture between China's battery giant CATL and multinational automaker Stellantis has broken ground in Spain's northeastern region of Aragon, with a groundbreaking ceremony held on Wednesday for the project that marks one of the largest Chinese industrial investments in the country.
CATL and Stellantis aim to have the new gigafactory in Zaragoza, located in Aragon, up and running by the end of 2026 and, with a joint investment of over 4 billion euros. The facility will run entirely on renewable energy. It is expected to deliver up to 50 GWh of lithium-iron phosphate batteries a year for electric vehicles.
CATL is the world's biggest and best-selling electric vehicle battery maker, and Stellantis is a global car manufacturer that has Jeep, Fiat, Chrysler, Dodge, Peugeot, and Vauxhall under its umbrella - among others.
These two multinational powerhouses have teamed up to build an EV battery plant with a clear aim.
"To accelerate the transition towards affordable, accessible, sustainable mobility for all," said Wu Qi, CEO of Contemporary Star Energy - the joint venture set up by CATL and Stellantis, in his speech at the ceremony.
Spanish Minister of Industry, Trade and Tourism Jordi Hereu said the groundbreaking ceremony represents a strategic milestone in Spain's new-energy transition and industrial modernization, as well as Europe's strategic independence on the world stage.
"Today we are laying the first stone, the fruit of cooperation and of a vision of what an independent European strategy needs to be - open to cooperation, to dialogue, to work with all of the countries in the world, and especially with a country like China," he said.
During the ceremony, representatives from both sides sealed copies of Spain's Heraldo de Aragon and China's People's Daily into a time capsule to be placed at the factory's entrance as a symbol of long-term commitment to the project's future.
As China continues to lead innovation in sustainable technology, Spain is positioning itself as a global EV manufacturing hub through high levels of education, lower costs, and on-site solar and wind energy. It is in the talk about setting up a brand-new European plant that another Chinese EV giant, BYD, is planning.
CATL, Stellantis break ground on major EV battery plant in Spain
