CATL defends Zaragoza as the ideal hub for battery manufacturing

Chinese manufacturer Contemporary Amperex Technology Limited's (CATL) bid for Zaragoza to build a mega-plant for electric vehicle batteries in Figuerelas was the result of an extensive analysis that ultimately resulted in a joint venture with Stellantis. Several factors in this process tipped the balance in favor of Zaragoza for the establishment of its European lithium-iron phosphate (LFP) battery hub. Several executives from the Asian giant explained this to this outlet in a conversation where they praised the facility chosen to develop the gigafactory .

"The proximity to a Stellantis vehicle assembly plant and the support of the Spanish authorities, including the green energy supply, were key factors in selecting this location," define CATL, official sources from the group, who see Zaragoza as "a perfect location for battery manufacturing" due to "the well-developed infrastructure, the solid business environment, the booming electric vehicle ecosystem, and the competitive human resources." Among their arguments, they support their bet on "the available land available in the industrial park to build a battery cell production facility, as well as the facilities that can be transformed into module production factories."

The project, announced last December, will begin construction between the end of this year and the beginning of 2026, with a goal of being ready by 2028. On a 790,000-square-meter plot located near the Stellantis factory, CATL boasts that the factory will be designed to be "the first carbon-neutral plant with a local supply of clean energy in Europe." To this end, they cite the example of the group's plant in Yibin, located in Sichuan province in southwest China. This, they claim, "is the world's first battery factory certified as carbon-neutral."

Another competitive advantage that they believe the location chosen to develop their first center in Spain will provide them is the essential service infrastructure. that the industrial park guarantees, such as the supply of water, electricity, and gas for the battery plant. "This will maximize synergies and avoid redundant investments," they comment, adding that the facilities will feature systems to reduce water consumption. In this regard, it is worth highlighting the commitment to renewable energy in the form of a photovoltaic park and a Nordex wind turbine, which will contribute to the energy efficiency the group seeks in this project.

Explore new opportunities to produce abroad

All of this, according to the plans announced months ago, will be supported by an investment of nearly €4.1 billion and will have an annual production capacity of up to 50 GW, which will serve Stellantis' plants in Zaragoza, Vigo, and Madrid. This operation, CATL explains, is part of its productive expansion strategy, which has led it to establish roots in Germany, Hungary, and Indonesia, in addition to Spain . When asked about the possibility of continuing to grow in the Spanish market, the same sources simply mention that " we will continue to expand our presence abroad, taking into account multiple factors, including market demand, the investment environment, the development of the local supply chain, the availability of skilled labor, and cost levels, among others."

This conversation with the world's largest battery producer comes at a key moment for its business, following the formalization of an alliance with Chinese electric vehicle manufacturer NIO, with the aim of building a battery swapping network in China. Asked about a possible expansion of this business to the Spanish market, the sources consulted focus on expanding its Choco-Swap stations to Hong Kong and Macau by 2025 as a first step to "gain experience for future global expansion." "CATL has a clear timeline for building its battery swapping network in China. To meet growing market demand, we will build 1,000 Choco-Swap stations by 2025. In the medium term, CATL will build 10,000 stations together with our partners," they explain.

To support these investments and accelerate its international expansion, CATL is seeking new avenues for financing. Last March, the company received the green light from the China Securities Regulatory Commission (CSRC) to proceed with its listing on the Hong Kong market . It is now seeking a secondary listing to capitalize on the growing interest in the electric vehicle market and increase access to foreign capital. "The final size of the offering will be subject to market conditions, investor feedback, and regulatory approval. This move is primarily aimed at creating an international financing platform to better support our global business development." Investor engagement will therefore play a crucial role in its expansion across Europe, given that, as they explain, "approximately 90% of the funds raised will be used to advance the construction of the project in Hungary."