November 27, 2025 – Stellantis and Contemporary Amperex Technology Co. Limited (CATL) have officially kicked off the construction of a massive €4.1 billion battery plant in northern Spain, marking a significant move that further underscores Europe’s growing reliance on Chinese battery expertise.
The two companies aim to commence partial production at the facility by the end of next year. According to documents submitted to local authorities, the project is set to reach 30% of its planned capacity by 2028. Once fully operational in 2030, the plant is expected to employ nearly 4,000 workers and produce around 50 gigawatt-hours of lithium iron phosphate (LFP) batteries annually.
This development comes at a time when Europe’s homegrown battery industry is struggling to keep pace with Asian giants like CATL. Despite substantial investments from the European Union to bolster local competitors, companies such as Britishvolt and Northvolt have collapsed. Moreover, Stellantis’ joint battery venture with Mercedes-Benz, as well as Volkswagen’s PowerCo, have scaled back their plans due to slowing demand for electric vehicles.
In contrast, CATL continues its aggressive expansion strategy. Its new plant in Hungary is set to manufacture a diverse range of battery technologies, extending beyond just lithium-ion solutions.
