Chinese EV battery maker CATL, together with its partner Stellantis, celebrated the groundbreaking of their 50:50 joint venture’s 50 GWh lithium iron phosphate (LFP) gigafactory in Zaragoza, Spain. The project marks one of Europe’s most significant battery investments to date, accelerating affordable and sustainable electric mobility across the continent.
Set to start production in late 2026, the plant will supply batteries for up to one million EVs annually, cutting more than 30 million tons of CO₂ over vehicle lifetimes.
With a total investment of up to EUR 4.1 billion, the gigafactory will create more than 4,000 direct jobs and thousands of indirect jobs while strengthening the European battery value chain and the local industrial ecosystem. The project reflects CATL’s shift from “to Europe” to “in Europe, for Europe,” and now toward “of Europe” through deeper industrial integration.
Other Key highlights:
• Carbon Neutrality: Designed as Europe’s first carbon-neutral lithium battery factory.
• Technology Advancement: The project incorporates cutting-edge technologies such as Cell-to-Body design, enabling cells to be integrated directly into the vehicle structure, improving efficiency and safety.
• Sustainable Manufacturing: It will rely on more than 80% renewable energy supply and apply Industry 4.0 standards to ensure intelligent and sustainable processes.
The Zaragoza gigafactory reflects CATL’s evolving European strategy—from early exports “to Europe,” to establishing local production “in Europe, for Europe,” and now toward being “of Europe” through deeper industrial integration. This progression is rooted in the strategic partnership formed in 2016 between Stellantis and CATL, which has grown from a supplier relationship into a shared industrial venture, aligning both companies’ long-term visions for Europe’s electrification.
Europe is a cornerstone of CATL’s global strategy. The company is investing over EUR 11 billion into advanced manufacturing and innovation capabilities across Germany, Hungary, and Spain, underscoring its long-term commitment to Europe’s energy transition.
CATL’s vision is evolving from “to Europe” and “in Europe, for Europe” toward “of Europe,” reflecting a deeper integration with Europe’s industrial and innovation ecosystem.
This commitment extends beyond production. CATL aims to help Europe develop a closed-loop battery value chain, spanning materials production, cell manufacturing, remanufacturing, and recycling. The company is sharing battery know-how with local partners, collaborating with recyclers, and supporting education initiatives that build the skilled workforce Europe needs for its energy transition.
