PARIS (AFP) – Car giant Stellantis and Chinese manufacturer CATL said yesterday that they would build a USD4.3 billion factory to make electric car batteries in Spain.
They aim to start production by the end of 2026 at the site in the northern city of Zaragoza.
It “could reach up to 50 GWh capacity, subject to the evolution of the electrical market in Europe and continued support from authorities in Spain and the European Union”, the companies said in a statement. The two firms signed an agreement in 2023 to produce battery parts for the manufacture of electric vehicles in Europe.
CATL chief executive Robin Zeng met on Monday evening with Spain’s Prime Minister Pedro Sanchez, ahead of the announcement of the EUR4.1 billion deal.
Spain has been playing a growing role in European vehicle production, assembling 1.87 million cars in 2023 – the second-biggest European producer after Germany, according to the European Automobile Manufacturers’ Association.