Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric vehicle (EV) battery maker, is collaborating with Stellantis to establish a new production plant in Zaragoza, Spain.

The €4.1 billion (US$4.3 billion) facility will boast an annual production capacity of 50 gigawatt-hours (GWh).

Operations are expected to commence in 2026, with the plant set to manufacture lithium iron phosphate (LFP) batteries for mid-range EVs, including crossovers and sport-utility vehicles.