China’s CATL has recently kicked off the development of what is anticipated to be Spain’s largest battery manufacturing facility. The €4.1bn ($4.8bn) project is a joint venture with automaker Stellantis and is taking shape in the northeastern region of Aragon.
Situated in Figueruelas, a small town with approximately 1,300 residents, the plant is slated to commence production towards the end of 2026. The substantial investment is bolstered by over €300m in funding from the European Union.
Spain’s Industry Minister, Jordi Hereu, expressed his enthusiasm for the project by stating, “We’re building the best investment model in Spain and in Europe.” He emphasized the significance of the factory in Figueruelas as “the best contribution that Spain can make to the re-industrialization of Europe.”
According to reports by Reuters, the construction of the facility will involve around 2,000 Chinese workers initially, with plans to recruit and train approximately 3,000 Spanish workers as operations progress. CAAR Aragon, a network of automotive companies in Aragon, acknowledged the advanced technology involved in the project and highlighted the learning opportunities it presents for the local workforce.
CATL has already deployed Chinese engineers and managers on-site in Figueruelas, with more expected to join in the coming months. Jose Juan Arceiz, the UGT union Aragon secretary general, emphasized the importance of skill development programs in collaboration with the local university to support the project’s success and create employment opportunities for Spanish workers.
Spain, being the second-largest vehicle producer in Europe, is positioning itself as a key hub for battery manufacturing, leveraging its competitive labor costs and industrial energy prices. In addition to the CATL-Stellantis project, three other battery plants are in the pipeline in the country, involving Envision AESC, Volkswagen’s PowerCo, and InoBat.
Despite the progress, technological capabilities remain a challenge. Stellantis shipping manager Roque Ordovás Mangirón noted the shift from German to Chinese technology and emphasized the importance of labor expertise in Spain. The Aragon regional administration is actively working to attract further segments of the battery supply chain to the area.
The initiative comes amidst calls from European automotive industry bodies for stricter regulations on local content in vehicle and battery production to safeguard domestic manufacturers from Chinese competitors. The European Commission is gearing up to introduce a new set of measures to strengthen the bloc’s automotive sector.
In conclusion, the collaboration between CATL and Stellantis in Spain’s battery manufacturing sector signifies a significant step towards enhancing Europe’s industrial landscape. The project not only promises economic benefits but also underscores the importance of skill development and technological innovation in driving sustainable growth in the region.
