CATL Launches Factory Construction In Spain

CATL, the largest EV battery producer in the world (by far), is doing what some Chinese EV producers are doing — it’s launching production in Europe. With the European Union slapping tariffs on EVs manufactured in China earlier this year, Chinese EV producers are starting to build factories in Europe. If they want to use the same tech inside, especially the same batteries, they could benefit from their suppliers building factories in Europe as well.

That seems to be what’s happening here. So, I guess you can say the EU’s plans are coming to fruition, somewhat at least. It is increasing jobs within its borders.

This CATL battery factory is being built in Aragon, Spain, in collaboration with Stellantis, which formed a joint venture with CATL for this project in December 2024. Construction just started. Reportedly, 2,000 Chinese workers are helping with the construction of the factory. Once the factory is ready for operation, approximately 3,000 Spanish employees will be recruited and trained there.

Battery production is supposed to begin in late 2026. In total, 4.04 billion euros ($4.68 billion) are expected to be invested into the factory. Furthermore, 300 million euros were provided by the EU. The factory’s annual production capacity is expected to be 50 GWh.