The construction of Spain's largest battery plant began on Wednesday, a €4.1 billion (US$4.8 billion) JV between Chinese giant CATL and Stellantis that underscores Europe's deepening reliance on Beijing for critical energy infrastructure.
The project, formally known as Contemporary Star Energy, is backed by more than €300 million in EU funding.
It aims to reach a production capacity of 50 gigawatt-hours (GWh) by late 2026, supplying lithium iron phosphate (LFP) batteries to Stellantis assembly lines across the continent, including the Opel factory located adjacent to the new site.
The Zaragoza plant joins a growing list of battery projects in the region, including planned facilities by Envision AESC, Volkswagen's PowerCo, and InoBat.
"2,000 Workers"
While CATL executives touted plans to train up to 4,000 future operators, immediate attention focused on the workforce required to build the facility.
Reports indicate up to 2,000 workers may be flown in directly from China for the construction phase - a move that drew sharp scrutiny from local unions.
Andy Wu, chief executive of the JV, declined to confirm specific figures regarding Chinese labour.
"We are just in the phase to select our subcontractors," Wu told reporters, adding only that the firm remained "open to hiring locals" and planned to collaborate with universities for training.
A spokesperson later stated the proportion of Chinese staff would eventually drop to less than 10%.
EU tech shift
The groundbreaking occurs as the European Commission prepares new measures to protect the bloc's automotive sector from Chinese competition.
Yet, industry representatives in Aragon were blunt about the region's inability to execute this project independently.
"We don't know this technology, these components - we've never made them before," CAAR Aragon director general David Romeral said.
"They're years ahead of us. All we can do is watch and learn."
Spanish Industry Minister Jordi Hereu, standing alongside China’s ambassador to Spain, Yao Jing, framed the foreign expertise as a necessity rather than a liability. Hereu described the technology transfer as "fundamental," stating Spain was "open and ready to collaborate and build with all countries of the world, especially China."
Economic Reality
Spain has positioned itself as a battery hub by leveraging industrial energy prices approximately 20% below the EU average and lower labour costs compared to northern Europe.
This economic reality was highlighted by Roque Ordovás Mangirón, a Stellantis shipping manager, who offered a stark assessment of Spain's role in the value chain.
"Before, it was mostly German technology, and now it's Chinese. What difference does it make? Here in Spain, what we offered was always labour," Mangirón said.
For local unions, the priority remains ensuring the promised transfer of jobs materialises.
"As the plant ramps up, there will be more jobs for Spanish workers," said Jose Juan Arceiz, secretary general of the local UGT union.
"This project needs to succeed, and everyone has to do their part."
