CATL to build a third battery factory in Europe with Stellantis in Spain

James H. Amos • August 16, 2026 05:29

Despite the European Union (EU) trying to tighten the rules around Chinese industry entering the market, China’s push into the Old Continent looks stronger than ever. After backing new car plants, Chinese companies are now moving to the next stage: building more battery production capacity in Europe.

CATL and Stellantis plan a third battery factory in Europe

CATL, one of China’s biggest battery manufacturers and among the largest globally, is set to fund the construction of a third European battery factory - this time in Spain. As reported by the Financial Times, around 2,000 workers will be sent in to build the site.

Investment, location and timeline

The plant is expected to be based in Zaragoza and will be created through a joint venture with Stellantis. For that reason, it is likely to sit close to one of the Group’s vehicle factories. In total, more than €4 billion is due to be invested. Work has not started yet, but production is expected to begin by the end of next year.

To support the development of this project, Stellantis is counting on €298 million from the NextGenerationEU fund - a temporary support package launched in 2020 aimed at helping member states recover economically.

A factory kept under lock and key

The battery factory may be coming to Europe, but the know-how appears set to stay in China. That is the conclusion suggested by comments from José Juan Arceiz, a member of Stellantis’s European workers’ council, who told the Financial Times: “I don’t think the Chinese want to share the know-how with us. That is one of the reasons why they will hire 2,000 workers for the construction and installation of the factory”.

Joris Teer, an economic security analyst at the European Union Institute for Security Studies, argued that “Xi Jinping, president of the People’s Republic of China, is seeking to turn the country into a self-sufficient fortress, while making the rest of the world even more dependent on Chinese labour”.

CATL’s response and local recruitment

Matt Shen, CATL’s managing director in Europe, pushed back on those claims, telling the British newspaper he is willing to “work together” with Europe’s smaller battery makers.

Beyond that, the Chinese battery producer said it intends to train and recruit local staff to run its plants, as it had previously done at its German facility, which has been operating since 2022.

Altogether, the company said it planned to hire around 3,000 workers for the new site, with most of them being Spanish.

Portugal on the route of Chinese batteries

Earlier this year, CALB (China Aviation Lithium Battery) announced a €2 billion investment in Portugal to build a lithium-ion battery factory in Sines. All the details in this article: