China’s CATL to build $4.1bn battery factory with Stellantis in European expansion

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China’s CATL to build $4.1bn battery factory with Stellantis in European expansion
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Deal for Spanish plant comes despite EU efforts to reduce reliance on Chinese technology

CATL and Stellantis will build a €4.1bn lithium battery factory in Spain, expanding China’s manufacturing footprint on European soil and boosting the European carmaker’s pivot to electric vehicles. The factory in Zaragoza, northeastern Spain, is scheduled to start production by late 2026 under a 50-50 joint venture between the world’s biggest battery maker and the fourth-largest carmaker, owner of the Peugeot, Jeep and Fiat brands.

The Chinese group, which is a key Tesla supplier, has been working to expand in Europe as tensions between Beijing and Washington threaten its growth plans in North America. CATL is also working with Elon Musk’s company as well as Ford to license its battery manufacturing technology for factories in Nevada and Michigan respectively.

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