Stellantis–CATL Spain Battery Plant Raises Questions About Europe’s China Dependence

In late November 2025, Stellantis and CATL broke ground on a massive new battery plant in Figueruelas, Aragón, Spain — a €4.1 billion (or about $4.7 billion) project aimed at producing lithium-iron-phosphate (LFP) batteries for electric vehicles (EVs). The facility — operated by their joint venture Contemporary Star Energy — is slated to begin production in late 2026, eventually cranking out up to 50 GWh of batteries per year. 

But while the plant is being hailed by supporters as a major step for Europe’s EV ambitions, it has triggered concern that the continent is doubling down on China — now not only for finished batteries, but for the very factories that build them.

Chinese Labor In the Spotlight — For Now –

Recent reports claimed that up to 2,000 Chinese workers might be brought in to build the plant. That sparked a wave of criticism in Spain and across European supply-chain watchers, worried that local labor would be excluded and that technology transfer might stay tightly controlled.

At the ground-breaking ceremony, Contemporary Star Energy’s CEO Wu Qi directly addressed those concerns:

“We are just in the phase to select our subcontractors. We are not yet able to say the firm number,” Wu said — adding that the joint venture was “very open” to hiring local workers.

So for now the final tally of Chinese vs. local workers remains undecided — though interest groups will be closely watching as the plant progresses.

Why Europe Needs the Plant — And Why It Still Matters Who Builds It –

On one hand, Europe desperately needs battery capacity if it hopes to meet its growing EV demand, especially under tightening emission and manufacturing rules. The new Spain plant helps address that shortfall and gives Stellantis direct access to China-backed battery supply without relying entirely on imports. From a cost and speed perspective, that’s hard to beat.

On the other hand, critics argue this could further shift Europe’s automotive manufacturing control to non-European players. With CATL controlling a major gigafactory — and with uncertainty over long-term local hiring and technology sharing — there’s a risk Europe becomes dependent not only on Chinese battery materials, but also on Chinese-built infrastructure.

That’s why the identity and makeup of the workforce matters: who installs the equipment, who maintains it, who learns how to run the factory — those are often the real levers of long-term influence.

Spain and Brussels Push, But Some Remain Wary –

For its part, Spain is embracing the plant. At the ceremony, Spanish Industry Minister Jordi Hereu praised the project as a “strategic milestone” for Spain’s industrial modernization. He said the investment underscores Spain’s role in Europe’s push toward electrification, and signaled Madrid’s support for the venture.

Meanwhile, the Chinese ambassador to Spain, Yao Jing, hailed the project as Beijing’s biggest industrial investment ever in Spain and emphasized its cooperative potential. In his view, the plant reflects a vision for “European strategic autonomy” — if European partners commit to collaboration.

But among European policymakers, there is growing talk of tighter rules on foreign investment, labor sourcing, and internal-supply-chain requirements — especially for critical industries such as battery manufacturing.

What This Means for Europe’s EV Future — And Why It Matters –

• Battery backup, but with strings attached: The Spain gigafactory gives Stellantis and Europe much-needed battery output — but control remains with a China-backed company with global influence.

• Local jobs vs. foreign labor: If Chinese workers dominate early construction — and later staffing remains heavily foreign-sourced — the promise of local employment and know-how transfer could fall short.

• Strategic dependence over independence: With CATL owning the tech and the plant, Europe could risk building its EV future on infrastructure that remains outside its full control — potentially undermining long-term industrial sovereignty.

• Pressure for regulation: As more such ventures emerge, Europe may increasingly demand stricter investment rules — requiring jobs, local sourcing, and technology access — rather than treating these mega-investments as purely business deals.

Europe faces a fundamental balancing act: ramp up EV battery capacity quickly — or build long-term self-reliance in critical industries. The new Stellantis–CATL battery plant in Spain may check the output box, but how it evolves — who works there, who runs it, who controls the know-how — will tell whether Europe ends up empowered or dependent.

Source: Bloomberg