Construction is underway on a €4.1 billion battery gigafactory beside Stellantis’ Figueruelas vehicle plant in Zaragoza. Contemporary Star Energy (CSE), the Stellantis-CATL joint venture formally established on 9 July 2025, is developing the project. Its planned annual capacity is up to 50 GWh of lithium-iron-phosphate (LFP) batteries. That is a target for the completed facility, not current production. The project is intended to strengthen Europe’s battery supply chain and support electric-vehicle manufacturing in Aragón.
The factory is planned for an 89-hectare site beside Stellantis’ assembly facility. Project plans allocate 94% of the funding to CSE, with a further €300 million in government support through the Perte for Electric and Connected Vehicles program. The plant will manufacture battery cells and modules, not assemble final battery packs. LFP chemistry is commonly used to reduce battery costs and reliance on nickel and cobalt.
Local Impact and Workforce
CSE projects a workforce of approximately 4,000 people once the plant reaches full production. That is a long-term employment estimate, not its current staffing level. Hiring and training are being phased alongside construction. The first locally hired production and maintenance employees from Aragón are receiving practical instruction at CATL facilities in Xiamen, China. There, they are learning to operate cell and module manufacturing lines alongside CATL specialists. Aragón’s president, Jorge Azcón, said at the groundbreaking ceremony that the plant could contribute over 5% of the region’s GDP by 2027.
Initial concerns arose over the origin of the workforce, amid speculation that most jobs would go to Chinese workers. The project expects operational hiring to draw substantially from the region, with recruitment progressing as construction and commissioning advance. The planned focus on LFP batteries also positions the facility to serve demand for more affordable electric vehicles in Spain and across Europe.
Boost for Spanish Manufacturing
The gigafactory is part of a wider shift in the Figueruelas automotive cluster toward electric vehicles. Stellantis has begun producing the Leapmotor B10 electric SUV at its Zaragoza plant, giving the Stellantis-Leapmotor alliance a European manufacturing base. The B05 and other models, including the A10 and A05, have also been identified in plans for production at the site. Locating battery manufacturing beside vehicle assembly is intended to support local supply and link the two stages of production.
Stellantis’ collaboration with CATL is intended to secure battery supply for the group’s electrification plans. Peugeot, Citroën, Opel, Jeep, Alfa Romeo, Fiat, Lancia and Maserati are among its brands with electric-vehicle offerings. The company has described its portfolio as including 60 electric models. The Zaragoza project adds a planned battery-manufacturing base to the group’s European industrial network.
Context and Outlook
European automakers are building local battery capacity as they reorganize supply chains for electric vehicles. The Stellantis-CATL partnership brings together the automaker’s regional manufacturing footprint and CATL’s battery expertise. A recent analysis of battery longevity in electric vehicles noted that advances in battery technology are rapidly reshaping the market and consumer expectations.
Operations are planned to begin by late 2026, with full capacity targeted for 2028. Alongside the gigafactory, six separate auxiliary-industry projects in Aragón represent about €200 million in investment and nearly 1,000 projected jobs at full operation. Those supplier-project estimates are separate from CSE’s forecast of approximately 4,000 jobs. Together with Leapmotor production in Figueruelas, the developments are reshaping Zaragoza’s automotive cluster around electric vehicles and battery manufacturing, with supporting industries growing alongside them.
