Contemporary Amperex Technology Co. Limited (CATL), a global pioneer in new energy technologies, and Stellantis have commenced construction of their 50:50 joint venture’s 50 GWh lithium iron phosphate (LFP) battery gigafactory in Zaragoza, Spain. Announced on 26 November 2025, the project stands as one of Europe’s most significant battery manufacturing investments, marking a major leap toward affordable and sustainable electric mobility across the continent.
Scheduled to begin production by late 2026, the facility will deliver up to 50 GWh of annual capacity—enough to power one million electric vehicles each year. This shift is projected to reduce over 30 million tonnes of CO₂ emissions during vehicle lifetimes and save more than 125 million barrels (17 million tonnes) of crude oil, significantly contributing to Europe’s decarbonization goals.
Backed by investments of up to €4.1 billion, the gigafactory is expected to create over 4,000 direct jobs and thousands more across the supply chain, bolstering Europe’s battery value chain and strengthening regional industrial capabilities.
Europe’s First Carbon-Neutral Battery Factory
The Zaragoza gigafactory is designed to be Europe’s first carbon-neutral lithium battery plant, powered by more than 80% renewable energy. It integrates advanced technologies, including Cell-to-Body (CTB) design, allowing battery cells to be integrated directly into vehicle structures for improved safety, efficiency and performance. Built on Industry 4.0 principles, the facility will feature smart, automated and environmentally responsible manufacturing processes.
The project marks a major evolution in CATL’s Europe strategy—from exporting batteries “to Europe,” to producing “in Europe, for Europe,” and now becoming “of Europe” by deeply integrating with the region’s industrial ecosystem. The CATL–Stellantis partnership, established in 2016, has steadily grown from a supplier relationship into a shared industrial venture aligned with Europe’s long-term electrification roadmap.
CATL’s Deepening European Footprint
Europe continues to be a core pillar of CATL’s global growth strategy. The company has committed more than €11 billion to projects across Germany, Hungary and Spain.
- Germany (Thuringia):
CATL’s first overseas plant began production in 2022 and supplies high-performance cells to European automakers. Its testing centre—certified by Volkswagen—is undergoing major expansion. The Thuringia operations represent €1.8 billion in investment and employ more than 1,700 people, supported by training programs to build long-term regional expertise. - Hungary:
Hungary serves as a high-capacity manufacturing hub, with 800 employees hired so far and over 2,000 expected by end-2025. The workforce is projected to reach 4,100 when full production begins in 2026. Construction of the company’s second facility is advancing on schedule.
Building the Future “of Europe’’
CATL aims to help Europe build a complete closed-loop battery value chain—from materials production to cell manufacturing, remanufacturing and recycling. The company is collaborating with recyclers, supporting educational initiatives and sharing technical expertise to build the skilled workforce needed for the continent’s clean energy transition.
Highlighting the partnership’s achievements, Andy Wu, CEO of Contemporary Star Energy, said, “Together with Stellantis and CATL, we are transforming bold ideas into reality. At our Zaragoza plant, we are introducing extreme modularity in product design and manufacturing, integrating cutting-edge cell-to-body technology into Stellantis’ STLA S platform vehicles. This is just the beginning—we are already collaborating on next-generation solutions and securing raw materials through strategic agreements to strengthen the supply chain. Our shared commitment ensures Europe benefits from the most innovative products at the best cost.”
With construction now underway, the Zaragoza gigafactory stands poised to become a cornerstone of Europe’s sustainable mobility transformation, setting new benchmarks in battery innovation, manufacturing and carbon-neutral operations.
