Chinese battery manufacturer CATL has started construction on its third European production facility in Figueruelas, located in northeastern Spain. The joint venture with Stellantis is supported by more than 300 million euros in EU funds. The site with an expected total cost of around 4.1 billion euros is scheduled to begin production at the end of 2026. Announced in December 2024, the plant will have an annual production capacity of up to 50 gigawatt-hours of lithium iron phosphate (LFP) cells.
Construction by workers from China
According to CATL, around 2,000 workers will be sent from China to build the factory. They will also train Spanish personnel, who are expected to comprise around 90 percent of the workforce in the medium term. Ultimately, the plant is set to employ up to 4,000 local workers. CATL already operates two other sites in Europe, including a plant in Hungary.
Cheaper energy prices
Spain is positioning itself as a location for the battery industry by offering comparatively low labor costs and cheaper energy prices. In addition to CATL, Envision AESC, PowerCo, and InoBat are planning to build plants in Spain. Meanwhile, the EU is preparing measures to strengthen local value chains and reduce dependence on Chinese technologies.
