20:29 30-11-2025

CATL and Stellantis begin Zaragoza LFP battery gigafactory to power 1 million EVs a year

CATL and Stellantis start a €4.1bn LFP battery gigafactory in Zaragoza, Spain, set to supply up to 1M EVs yearly, create 4,000 jobs, and run on renewable energy.

In Zaragoza, Spain, a groundbreaking ceremony marked the start of construction on one of Europe’s largest battery factories. Chinese battery maker CATL and automaker Stellantis are launching a €4.1 billion joint project. The site is set to underpin the next phase of the EU’s electric transition, with capacity to supply batteries for up to one million electric cars a year — an output that turns policy targets into production reality.

The gigafactory will focus on lithium iron phosphate (LFP) cells and, across the lifetime of all units produced, could cut more than 30 million tonnes of CO2. Production is scheduled to begin at the end of 2026. More than 4,000 direct jobs are planned, with thousands more indirectly, a scale likely to jump-start a local supply chain rather than simply add another pin to the map.

The plant is presented as Europe’s first carbon-neutral battery factory, drawing 80% of its energy from renewables. It will also integrate Industry 4.0 standards and innovations such as Cell-to-Body, where battery cells become part of a vehicle’s load-bearing structure. For CATL, the project signals a shift from market presence to deeper industrial integration within the EU, a trajectory that, if delivered as promised, sets a demanding benchmark for regional battery manufacturing.