Central European companies cooperate to build battery factory in Spain, foreign media: it is a long-awaited economic bombshell in the local area

According to a comprehensive report by Global Times, Chinese battery manufacturer CATL and multinational automaker Stellantis jointly announced on the 10th that they will jointly build a lithium iron phosphate battery factory in Spain, with a total investment expected to be 4.1 billion euros, and the two companies will each contribute 50%. Reuters reported that the factory located in Zaragoza, northern Spain is expected to start production by the end of 2026, with a production capacity expected to reach 50 gigawatt hours.

Last November, CATL and Stellantis signed a memorandum of understanding. According to reports from foreign media such as the Spanish newspaper Abesai and the Financial Times, this is the long-awaited economic bombshell for Aragon (where Zaragoza belongs to the autonomous region) and also the most important investment for Spain. Spain is the second largest automobile producer in the European Union after Germany. As the industry transitions towards electric technology, Spain is trying to maintain its position and its government has been working hard to attract external investment.

Consumer News and Business Channel in the United States mentioned that the latest developments are taking place against the backdrop of numerous difficulties faced by European car manufacturers in promoting comprehensive electrification, including slower than expected launch of charging stations and the possibility of targeted tariffs imposed by the United States. The Financial Times reported that Europe has been working hard for some time to reduce its dependence on Chinese batteries and promote investment in battery related technology, but these efforts have encountered setbacks. A clear example is the Swedish battery manufacturer Northvolt, which went bankrupt last month. According to reports, Stellantis has always been open to collaborating with Chinese companies, having previously acquired a 20% stake in Chinese new energy startup Zero Run Automotive. Recently, Stellantis' sales in both the US and European markets have declined, facing a crisis. After announcing the plan to jointly establish a factory with CATL, Stellantis issued a statement stating that the completion and operation of the factory will further enhance the company's strength in lithium iron phosphate technology.

This factory construction plan is CATL's third large-scale investment in Europe. Its factory in Germany has already started production, and its factory in Hungary is expected to start production next year. In the United States, CATL also collaborates with companies such as Tesla. According to the Financial Times, in the first half of this year, the overseas market accounted for about 38% of the total market of CATL. According to reports, against the backdrop of ongoing geopolitical tensions between China and the United States, CATL may focus on developing the European market in the future. (Zhen Xiang)