A curious blend of American heritage, European manufacturing, and Chinese capital converged this week at the Stellantis plant in Figueruelas, Zaragoza. The site, once founded by General Motors and currently churning out models for Peugeot, Opel, Citroen, and Fiat, is now the recipient of the largest Chinese industrial investment ever seen in Spain. A $4.1 billion gigafactory dedicated to battery production.
The new plant, a joint venture between Stellantis and the global battery leader CATL, would start producing battery cells by the end of next year. This project seems a colossal bet on the future of electric vehicles, aiming for a maximum production capacity of 50 GWh.
The vast majority of the funds, a staggering 94%, will arrive by Contemporary Star Energy, the Stellantis-CATL joint venture, promising 4,000 new jobs for the region. Regional President Jorge Azcón, clearly euphoric, deemed it the most significant day of his presidency, noting that the 89-hectare battery plant will account for over 5% of Aragon’s GDP by 2027.
Spanish Industry Minister Jordi Hereu, equally celebratory, labeled the moment “historically important” and confirmed the project would receive $300 million in aid from Spain’s Electric and Connected Vehicle Program. The Minister struck a surprisingly non-protectionist tone regarding the massive Chinese involvement. While affirming his pro-European stance, Hereu declared that Europe’s strongest projects would be those that “know how to cooperate with countries like China”.
Azcón sharply contrasted the good news with the industrial gloom elsewhere, noting that while factories are closing in Germany, Aragon is opening a plant that will complete the Figueruelas automotive hub and “transform the region’s economy”.
The price of this investment includes the influx of thousands of skilled Chinese workers to help construct and run the CATL-backed facility. However, Stellantis insists that this costly joint venture wants to benefit the consumer. The plant will produce cheaper Lithium Iron Phosphate (LFP) batteries which, while offering lower energy density than NMC cells, significantly reduce EV production costs.
By situating the battery and car assembly plants “side-by-side”, Stellantis anticipates critical logistical synergies that will ultimately contribute to lowering the prohibitive price tag of its electric cars.
