CATL & Stellantis starts construction on major battery plant in Spain
China’s battery giant CATL has started construction of a large battery manufacturing facility in Figueruelas, Spain, developed together with Stellantis. According to Reuters, the project represents an investment of around EUR 4.1 billion and includes more than EUR 300 million in EU funding.
The plant will focus on LFP (lithium-iron-phosphate) battery cells and modules and is scheduled to begin operations at the end of 2026. Industry reports indicate that once fully ramped up, it could reach an annual production capacity of up to 50 GWh.
Reuters also notes that approximately 2,000 Chinese construction workers will be involved in the initial build-out of the site. As the project progresses, the workforce composition is expected to shift, with around 3,000 local employees ultimately being hired and trained for long-term operations. Local unions estimate that the share of Chinese workers will fall below 10 percent over time.
Spain aims to strengthen its position in the European EV supply chain, leveraging comparatively lower labour and energy costs. As reported by Spanish industry representatives, the country is well placed to attract large-scale investments, though the lack of established technical expertise in battery manufacturing remains a challenge. Local partners acknowledge that extensive training will be required as production ramps up.
The project also expands CATL’s European footprint, complementing its existing operations in Germany and Hungary. As reported by Reuters, this development highlights both Europe’s growing demand for battery capacity and its ongoing reliance on non-European suppliers, despite policy efforts to increase regional autonomy.
For suppliers across the electronics and automotive ecosystem, the new facility may create significant opportunities once equipment installation, procurement and early production phases begin. For Europe’s EV ambitions, the plant will serve as an important test of whether large-scale battery manufacturing can be expanded quickly while maintaining competitiveness.
