Chinese electric battery giant Contemporary Amperex Technology(CATL)and multinational auto company Stellantis have officially begun construction of a large-scale lithium-iron-phosphate(LFP)battery factory in Aragon,northeast Spain,marking one of the largest Chinese industrial investments in the country,the Xinhua News Agency reported on Thursday.
With a planned investment of 4.1 billion euros($4.75 billion),the joint venture between CATL and Stellantis will boost the latter's LFP portfolio in Europe,according to the Xinhua report.It is expected to start production by the end of 2026 and could reach up to 50 gigawatt-hours capacity a year for electric vehicles by then.
Spanish Minister of Industry,Trade and Tourism Jordi Hereu said at the groundbreaking ceremony on Wednesday local time that it represents a strategic milestone in Spain's new-energy transition and industrial modernization.He stressed that the project reflects strong confidence between the Spanish and Chinese partners and underscores Spain's role as a key player in Europe's efforts to promote electrification.
Chinese Ambassador to Spain Yao Jing stated that the factory is of landmark significance,representing not only cooperation in the battery field but also a shared commitment between China and Spain to the green transformation,industrial upgrading,and future development.China is willing to share technology and opportunities with Spain to promote the common development of local communities and industries.
According to data released by South Korean market research firm SNE Research,the global energy output of batteries for electric and hybrid vehicles from January to August 2025 amounted to 691.3 gigawatt-hours,up 34.9 percent year-on-year.CATL continues to dominate the market for traction batteries,growing by 31.9 percent to 254.5 gigawatt-hours,with a market share of 37 percent.
China's Great Wall Motor(GWM)reportedly plans to build a factory in Europe to advance its overseas expansion.Reuters reported on Thursday that it is targeting annual production of 300,000 vehicles by 2029 in Europe,where it is scouting locations for its first car plant,a company executive said.The company is considering sites in Spain and Hungary,among other countries,said Parker Shi,president of GWM International.
Europe still has great potential for Chinese brands across all power trains,Shi said,and GWM's planned factory will build vehicles across the spectrum from conventional engines to fully electric models,according to the Reuters report.
This marks the first update to GWM's European production plans since 2023.The report noted that in 2023,GWM President Mu Feng indicated that the company had ambitious plans for the region and had begun factory site selection.
Chinese new-energy carmaker BYD is building plants in Hungary and Turkey,according to media reports.Last month,Reuters reported that BYD is considering establishing a third European car plant in Spain.
Pan Helin,a member of the Expert Committee for the Ministry of Industry and Information Technology,told the Global Times on Thursday that the Chinese and European new-energy industries have enjoyed long-standing mutually beneficial cooperation.Joint ventures,technology partnerships,and cross-investments have helped Chinese brands expand in the European market,enabling Chinese firms to contribute to Europe's supply chains.
"Amid global trade uncertainty and geopolitical tensions,Chinese new-energy companies continue to offer more high-quality,affordable technologies and products for the global market,"Pan noted.
