Stellantis, CATL invest $4.7b in Spain EV battery plant

Stellantis and CATL have started construction on a €4.1 billion (US$4.7 billion) battery plant in Figueruelas, northern Spain.

Stellantis is Europe’s second-largest carmaker, and CATL is a major Chinese battery producer.

The joint venture, called Contemporary Star Energy, is expected to employ almost 4,000 people and produce about 50 gigawatt-hours of batteries annually when fully operational by 2030.

The plant aims to start some production by the end of 2026 and reach 30% capacity by 2028, according to filings with local authorities.

Hundreds of Chinese workers are expected to work at the site in the initial phase, partly to train local employees, with long-term hiring focused on the local workforce.

The joint venture is providing the majority of funding for the project.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

LFP chemistry at the plant cuts nickel and cobalt use, backing Stellantis’ affordability goal

A Figueruelas joint venture (JV) by Stellantis with CATL in northern Spain will build lithium iron phosphate (LFP) batteries for B- and C-segment cars, with Stellantis confirming the plan while aiming for lower prices 1
LFP avoids nickel plus cobalt, which fits Stellantis’ push for durable B and C segment EVs with mid-range capability 1
Stellantis will run both nickel manganese cobalt (NMC) and LFP chemistries to balance performance with cost, placing the Spanish site on mass-market EV duty where price outranks range 1
Capacity could reach 50 gigawatt-hours (GWh) if the European power market evolves and Spanish plus EU backing continues, which creates execution risk if demand falls short 1

Battery passport rules set 2027 deadlines for traceability and due diligence

EU Battery Regulation mandates digital battery passports with QR codes by February 18, 2027 for EV and industrial batteries over 2 kWh, with lifecycle data accessible across the value chain 2
Vendors selling blockchain traceability can pitch the Figueruelas JV now to land deals ahead of the August 2027 due diligence trigger for companies with annual net turnover above €150 million 3. That group includes Circularise’s Smart Questioning platform from Circularise, a supply chain traceability software provider 3
Due diligence needs visibility beyond tier-two suppliers 3. This lifts demand for AI tools that turn scattered supply chain files into structured data, an area Minespider, a blockchain-based materials traceability provider, is tackling 3
Passport rules apply regardless of battery origin, so CATL’s Chinese supply chain must meet EU transparency standards, which opens work for consultants who can bridge regulatory differences between markets 4