CATL and Stellantis have officially broken ground on their new lithium iron phosphate (LFP) battery gigafactory in Zaragoza, Spain, marking a major milestone in Europe’s push for a resilient, sustainable, and locally integrated EV battery supply chain. The project is led by Contemporary Star Energy, S.L., the joint venture formed by both companies.
A Carbon-Neutral Plant Targeting 50 GWh
Once operational, the facility will boast a production capacity of up to 50 GWh, making it one of Europe’s most advanced EV battery manufacturing sites. Designed as a carbon-neutral plant, the gigafactory will source over 80% of its energy from renewable sources and operate under Industry 4.0 smart manufacturing standards.
During the groundbreaking ceremony, the partners sealed a time capsule that will remain closed until 2045, symbolizing their long-term commitment to technological innovation and collaborative growth.
Advanced Technology: Cell-to-Body Integration
The project will incorporate CATL’s cutting-edge Cell-to-Body (CTB) technology, which allows battery cells to be integrated directly into the vehicle body. This next-generation design improves range efficiency, structural safety, and overall vehicle performance, aligning with Stellantis’ electrification roadmap and CATL’s global leadership in battery innovation.
Boost to Spain’s Industrial and Employment Landscape
Backed by an investment of up to €4.1 billion, the gigafactory is projected to create:
- 4,000+ direct jobs,
- Thousands of indirect jobs across the supply chain, and
- Major stimulus for Zaragoza, Aragón, and Spain’s broader manufacturing ecosystem.
The initiative is expected to strengthen Europe’s EV battery value chain, attract key suppliers, and deepen collaboration with local universities and training institutes—positioning the region as a competitive hub for electric mobility innovation.
Strategic Importance for Europe’s EV Future
For Stellantis, the plant supports its strategy to scale affordable electric mobility across Europe. For CATL, it represents another step in expanding its global footprint while enabling sustainable, region-focused battery production.
The joint venture underlines Europe’s shift toward energy independence, localized manufacturing, and advanced battery technologies that will power the next generation of electric vehicles.
