Battery production in Spain grows as CATL and Stellantis start construction

Battery plant construction begins in Spain

Construction has officially begun on a new battery gigafactory in Zaragoza, Spain, developed by Contemporary Star Energy, the joint venture between CATL and Stellantis. Verified November 2025 reporting confirms that ground preparation and early structural work are underway on the site adjacent to Stellantis’ long‑established Zaragoza vehicle plant.

The project strengthens Europe’s ability to source battery cells locally rather than relying heavily on imports. Stellantis describes the plant as a strategic component of its long‑term electrification roadmap, supporting high‑volume EV manufacturing across multiple brands in the region.

LFP technology powers affordable cars

The Zaragoza facility will produce Lithium Iron Phosphate (LFP) batteries, a chemistry widely used for cost‑efficient electric vehicles. LFP cells avoid nickel and cobalt, reducing material costs while offering long cycle life and strong thermal stability. These characteristics make LFP suitable for high‑volume, mainstream EVs where affordability and durability are key priorities.

Stellantis plans to utilize these LFP packs in its B- and C-segment electric models, including compact hatchbacks and small SUVs. This approach supports the company’s goal of offering lower‑priced EVs in Europe and other global markets by pairing mass production with a more economical battery chemistry.

Massive capacity targets one million cars

Verified 2025 data indicate that the Zaragoza gigafactory is planned to reach an annual capacity of up to 50 GWh once fully operational.

At that scale, the plant could produce the equivalent of roughly one million 50‑kWh battery packs per year, depending on the mix of vehicle sizes and energy requirements. This positions the facility among Europe’s larger announced battery projects for the decade.

The capacity reflects Europe’s shift toward industrial‑scale EV production. As demand accelerates, automakers require multi-gigawatt-hour facilities to support the transition from combustion engines to electric powertrains across mass-market segments.

A huge boost for the local economy

The investment in the Zaragoza battery plant is valued at up to €4.1 billion, according to reports from the Spanish government and industry. The project is expected to create around 4,000 direct jobs, with additional employment generated across suppliers, logistics, and construction. Regional and national funding programs are supporting the development as part of Spain’s broader industrial modernization strategy.

This investment strengthens Aragón’s position as a major automotive hub. The construction phase brings significant economic activity to the region, while long‑term operations will anchor high‑tech manufacturing and support Spain’s role in Europe’s EV supply chain.

Construction uses a unique workforce plan

Verified 2025 reporting confirms that approximately 2,000 skilled workers from China have traveled to Spain to support the early construction phases of the Zaragoza gigafactory. These teams bring experience from previous CATL battery‑plant projects and will help ensure the facility is built to the company’s technical standards.

As construction progresses, these specialists will train local Spanish workers who will eventually operate the plant. This phased workforce model accelerates the build‑out while preparing the region for thousands of long‑term jobs in battery manufacturing and EV technology.

Renewable energy powers the production

Project plans indicate that the Zaragoza gigafactory is designed to be carbon-neutral and will rely on more than 80% renewable electricity, sourced from Spain’s expanding wind and solar capacity.

This aligns with Stellantis’ sustainability commitments and reduces the carbon footprint associated with battery production, a process that is typically energy-intensive.

Using renewable power improves the overall environmental profile of Stellantis’ future electric vehicles by lowering upstream emissions. The approach also supports Europe’s broader goals for clean industrial development and strengthens the region’s position in sustainable battery manufacturing.

Stellantis secures batteries for local cars

The Zaragoza battery plant strengthens Stellantis’ European supply chain by producing cells close to major assembly sites in Spain, France, Italy, and Germany. Localizing battery production reduces long‑distance transport needs and lowers exposure to global shipping delays. This supports Stellantis’ multi‑brand EV strategy across Peugeot, Fiat, Opel, Citroën, and other European models.

Shorter logistics routes help stabilize production schedules and reduce cost variability. With batteries sourced inside Europe, Stellantis can better manage delivery timelines and maintain consistent output as EV volumes increase across the continent.

CATL brings crucial technology to Europe

CATL, the world’s largest EV‑battery manufacturer by installed capacity, provides the technical foundation for the Zaragoza joint venture.

Its experience operating multiple gigafactories worldwide enables the project to adopt proven production processes, quality-control systems, and LFP-cell manufacturing expertise. This reduces the time required for the plant to reach high‑volume output.

Technology transfer from CATL accelerates Europe’s ability to scale battery production. By combining CATL’s manufacturing expertise with Stellantis’ regional footprint, the joint venture enables the faster deployment of cost-efficient EVs across European markets.

The factory supports the Spanish auto industry

Spain is one of Europe’s largest vehicle‑manufacturing countries, producing more than two million vehicles annually. As the industry transitions from combustion engines to electric powertrains, securing local battery production is essential to maintaining competitiveness. The Zaragoza plant supports this shift by anchoring high‑value EV‑related manufacturing within the country.

The project helps protect employment across Spain’s automotive sector as the supply chain modernizes. By adding battery production to its industrial base, Spain strengthens its position as a key contributor to Europe’s electric‑vehicle ecosystem.

The site is well connected for transport

The Zaragoza location was chosen for its robust logistics network, offering direct access to major Spanish highways and national rail corridors. These connections allow battery packs to be transported efficiently to Stellantis assembly plants across Europe, reducing transit times and improving supply‑chain reliability.

The region is also linked to Mediterranean ports such as Barcelona and Valencia through established freight routes. This supports the inbound shipment of raw materials and the outbound distribution of finished battery products, thereby improving overall logistics flexibility for the joint venture.

The battery cells will be recycled locally

Stellantis’ sustainability plans include integrating local recycling capacity for end‑of‑life battery packs. Under the EU Battery Regulation (EU) 2023/1542, producers are required to meet strict end-of-life and recycling rules; however, specific Zaragoza recycling partnerships have not been publicly announced.

This supports compliance with the European Union’s battery circularity requirements and reduces the long-distance transport of used packs.

Local recycling shortens material‑recovery loops and lowers environmental impact. As EV adoption increases, this capability will be essential for processing the growing volume of batteries returning from vehicles over the next decade.

New battery safety standards are required

The Zaragoza plant must comply with the European Union’s latest industrial‑safety regulations for battery manufacturing. These rules cover fire prevention systems, chemical handling procedures, and worker protection standards. Compliance is mandatory for all large‑scale battery facilities operating within the EU.

CATL and Stellantis will implement these requirements during construction and operation. Meeting these standards ensures a safe working environment and minimizes risks to the surrounding community, reflecting the regulatory expectations for Europe’s expanding battery‑production sector.

Curious about how battery safety ties into longevity? Explore our guide on EV battery lifespan and replacement costs here.

Spain becomes a major battery producer

With the construction of the Zaragoza gigafactory, Spain becomes a significant contributor to Europe’s battery‑production capacity. The joint venture with CATL brings advanced cell manufacturing technology and large-scale output, supporting Europe’s broader shift toward electrified transportation.

The project strengthens Spain’s industrial position by adding a critical component of the EV supply chain. As demand for batteries grows across Europe, the Zaragoza plant demonstrates that global automakers are investing heavily in local, sustainable, high‑volume production for the next generation of electric vehicles.

Want to see how CATL is expanding across Europe? Check out our article on their upcoming Hungarian battery plant set to launch in 2026.

Do you think Spain will become Europe’s battery powerhouse? Share your thoughts in the comments and hit like if you’re excited about this EV milestone.

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This slideshow was created with the assistance of AI and human input.