€4 Billion EV Battery Factory to Boost Aragón's Economy Amid Spain's Renewable Energy Transition
A €4 billion battery factory for electric vehicles is set to be built in Figueruelas, Aragón, by Chinese company CATL and automobile manufacturer Stellantis. Described as among Europe's largest Chinese investments, the project leverages Aragón's abundant wind and solar resources to power the plant, with local officials highlighting the area's year-round wind and plentiful sunshine.
Spain's renewable energy share has risen significantly, reaching 57% of electricity in the past year compared to approximately 33% in 2017, with an ambitious target of 81% by 2030. Despite progress, an April blackout across Spain and Portugal sparked political debate. Authorities stated the outage was not linked to renewables but caused by an unknown system event involving voltage oscillations. A cyberattack was ruled out. Following the blackout, Spain's electricity mix shifted toward greater natural gas use, indicating that the country's energy policy is at a crossroads.
Spain plans to close five nuclear plants between 2027 and 2035, with a decision pending on a life-extension request for the Almaraz plant until 2030. The nuclear industry advocates maintaining nuclear power for its stability and continuous low-carbon output. Ignacio Araluce of Foro Nuclear noted Spain's unique position in scheduling reactor shutdowns and supports a combined renewables-nuclear approach to ensure grid reliability.
Challenges remain due to the Iberian grid's isolation and gaps in energy storage capacity, leading to calls for expanded storage installations to support the energy transition. The political outlook is uncertain; Spain's ruling Socialist coalition is under corruption scrutiny and may face snap elections. A likely right-wing government might shift energy policy away from renewables, though the transition continues in the meantime.
Economically, the Figueruelas project will bring significant benefits, employing 2,000 Chinese workers during construction and potentially creating up to 35,000 indirect jobs in a town with a population of about 1,000.
