The electric vehicle market, a cornerstone of the EU’s green transition, poses a significant challenge for European automakers. European car makers are struggling to match the rapid advancements of Chinese companies in the EV sector. The EU has set a deadline to phase out internal combustion vehicles by 2035, making the success of EV production crucial.
Chinese battery leader CATL and Stellantis announced plans to build a cutting-edge battery manufacturing plant in Spain. The facility, located in Zaragoza, will produce lithium iron phosphate batteries starting in late 2026.
A €4.1 Billion Initiative for a Sustainable Future
The project involves a €4.1 billion investment and aims for carbon-neutral operations by utilizing Spain’s renewable energy capacity. This venture highlights the importance of reducing Europe’s reliance on imported EV batteries and components.
CATL already operates battery plants in Germany and Hungary, positioning itself as a major player in Europe. The partnership with Stellantis builds on a previous agreement to support Europe’s EV ambitions and secure a more sustainable future.
Spain is Europe’s second-largest car producer and a critical hub for the automotive industry. Spanish Prime Minister Pedro Sánchez’s meeting with CATL leadership underscores the strategic importance of this partnership. The new facility is expected to strengthen Europe’s EV supply chain and create local jobs.
Meanwhile, European car makers continue to face challenges from China’s advanced EV production capabilities. Efforts to impose tariffs on Chinese EV imports aim to level the playing field and encourage investment in Europe.