Gotion High-Tech is investing €940 million in a new battery environment with Inobat in Valladolid, starting with a cathode factory and a recycling plant in Palomares. The first phase is expected to create 1,000 jobs and strengthen Spain’s role in the electric vehicle supply chain.
This isn’t Gotion’s first major project in Spain. The company recently bought a 49% stake in the Sagunto gigafactory from Volkswagen’s PowerCo, investing €1.1 billion in a joint venture focused on LFP battery cells and cathode materials. German and Chinese partners now share the facility. PowerCo and EFE report that the Sagunto plant will open in early 2027 and employ 1,500 people, with expected annual capacity of 30 GWh. PowerCo retains a 51% controlling stake in the joint venture, EFE reports. Gotion’s network already stretches from Šurany in Slovakia to Kenitra in Morocco as the company builds a pan-European battery chain.
Spain has become a hotspot for battery makers, with Chinese investment leading the way. CATL, the world’s biggest battery producer, has teamed up with Stellantis on a €4.1 billion project near Zaragoza. They aim to reach full production by 2028 and plan to hire 4,000 people. Envision is also involved: its LFP battery plant will start with 12.5 GWh of capacity and 900 jobs. If the market grows, the project could expand to 94 GWh and 3,000 workers. Battery projects across Spain now total €8.365 billion and nearly 7,500 jobs. Cinco Días has also reported that the Valladolid project is expected to receive public support, further expanding Spain’s battery manufacturing capabilities.
Some projects are smaller but still matter. The Leapmotor-Stellantis joint venture opened a battery workshop in Mallén last year, investing €25 million and hiring 90 people. The plant can make up to 60,000 LFP cells a year. These projects are reshaping Spain’s industrial field as the country develops into a European hub for electrification.
Gotion’s Valladolid plan extends beyond assembly lines: the company wants to build a full battery environment, with anode production and assembly alongside research and development centers. The full €5 billion investment depends on progress in the first phase. Gotion and Inobat have both said future growth will hinge on the success of the first facilities. Construction is set to start in 2027.
Chinese battery investment in Spain is rising fast, while new electric vehicle brands are also arriving. As reported earlier, GAC AION UT has entered the Spanish market, challenging established names with European-built models and sharp pricing. Battery plants and car factories are coming together, intensifying competition in the sector.
The new projects cover the whole supply chain, extending beyond assembly. The Valladolid project will make cathodes and recycle materials, reducing dependence on outside suppliers and giving manufacturers more control over raw materials. This could give Spain an edge as European carmakers seek battery deals and technology partners. Success will depend on execution and demand, with the alliances also needing to deliver.
