Valladolid is emerging as a key player on Europe’s electric vehicle battery manufacturing map. The city is speeding up the preparation of industrial sites to attract investments from two major companies—Slovakia’s InoBat and China’s Gotion High-Tech. Their joint project promises not only to build a giant factory, but also to establish an entire cluster for battery component production.
The municipality is finalizing adjustments to the urban development plan to provide investors with 85 hectares of land, with another 40 hectares planned for the future. This will allow construction to begin without delays as soon as the companies obtain all the necessary permits. Even if there are bureaucratic setbacks, 20 hectares are already ready for development. Ultimately, the industrial zone will expand to 125 hectares, putting it on par with the largest production sites in Europe.
The scale of investment and new ambitions
The project was initially estimated at €700 million, but after Gotion acquired a stake in InoBat, that figure jumped to €5 billion. The plan now involves not only assembling batteries but also manufacturing anodes and cathodes—the key components for batteries. This approach will make it possible to concentrate nearly the entire electric vehicle battery value chain in one location, a unique case for Europe.
The plant is expected to supply up to 70% of the European factories’ battery component needs. This could shift the balance of power in the market and turn Valladolid into a hub attracting related industries. Company representatives have already toured the future site and praised the infrastructure, including access to essential energy and water resources.
State support and competition
Despite initial difficulties in securing government subsidies, the project received significant backing in 2025: €54 million in grants and nearly half a million in preferential loans. This became possible thanks to the third phase of the support program for the electric vehicle industry. As a result, Valladolid joined the ranks of priority locations alongside cities such as Sagunto and Figueruelas.
Once production starts, more than 250 direct jobs and around 500 indirect jobs are expected to be created. By 2027, the plant aims to reach a capacity of 32 GWh, and by 2029 — full-scale production. This will not only boost the regional economy but also make it a key link in Europe’s strategy for transitioning to green transport.
Partnerships and regional prospects
A key role in the project was played by Gotion’s partnership with the Spanish company Phi 4Tech, which specializes in developing materials for batteries. Additionally, new customs regulations are driving localization of production within the EU, making investments in Spain even more attractive.
Authorities in Valladolid are confident that the project will give a powerful boost to regional development. The city is counting not only on new jobs, but also on an influx of technology and the formation of a whole ecosystem of innovative enterprises around the plant. In the coming years, Valladolid could become one of Europe’s leading battery industry hubs if the companies fully realize their ambitious plans.
