Rudolph Angler The European automotive industry is grappling with a widening gap in electric vehicle production compared to Chinese manufacturers. As the EU’s green agenda accelerates, the shift to electric-only vehicles by 2035 becomes increasingly critical.
In a major development, Chinese battery maker CATL and global automaker Stellantis have announced plans to establish a battery factory in Spain. The plant, located in Zaragoza, will produce lithium iron phosphate batteries and begin operations by the end of 2026.
Massive Investment and Renewable Energy Integration
The €4.1 billion investment is designed to support Europe’s EV goals while achieving carbon neutrality. By leveraging Spain’s solar, wind, and water resources, the facility aims to set new standards in sustainable manufacturing.
This collaboration builds on a 2023 agreement between CATL and Stellantis to enhance battery production for electric cars in Europe. CATL’s existing operations in Germany and Hungary further reinforce its commitment to the European market.
Spain, the EU’s second-largest car producer, plays a pivotal role in this initiative. Spanish Prime Minister Pedro Sánchez’s recent meeting with CATL’s chairman highlights the significance of this partnership in driving green innovation and job creation.
Despite these advancements, European car makers still face stiff competition from China’s dominant EV industry. Tariffs on Chinese EV imports are part of broader efforts to protect Europe’s automotive sector and promote local production.