November 28, 2025: Auto giant Stellantis and Chinese battery major CATL broke ground on November 25 for a $5 billion LFP battery plant in northeast Spain.

The ‘Contemporary Star Energy’ joint venture project in the Aragon region marks one of the largest Chinese industrial investments in Spain, China’s state Xinhua news agency said.

The plant is expected to operate entirely on renewable energy when it starts production by the end of 2026 — delivering up to 50GWh of LFP batteries annually for EVs.

Aragon regional president Jorge Azcón said the plant strengthens the region’s long-standing automotive ecosystem, which includes more than 300 companies linked to the Stellantis factory in Figueruelas.

Wu Qi, CEO of Contemporary Star Energy, said the project is built on years of cooperation and shared vision. He said the new plant would bring long-term industrial opportunities, contribute to local development, and deepen collaboration on clean energy and technology.

The start of the project comes less than a month after European Commission president Ursula von der Leyen warned Europe’s economy was being squeezed by China and the US amid their tit-for-tat battle over battery material supplies and trade tariffs.

She also said China’s “dramatically tightened export controls” over rare earths and battery materials were part of wider economic friction with the US, which was having a big impact on Europe.

Meanwhile, a report released by Deloitte earlier this year — ‘European Battery Sovereignty, Towards Greater Competitiveness’ — said the continent’s heavy reliance on Asian battery manufacturers posed growing risks to its automotive industry.