CATL and Stellantis to Invest €4 Billion in Spanish Battery Factory Amid Spain's Renewable Energy Transition
CATL and Stellantis will build a new battery factory in Figueruelas, Spain, with a total investment of €4 billion. The plant will produce batteries for electric vehicles and is expected to generate up to 35,000 indirect jobs once operational. Around 2,000 Chinese workers will come to work on the project.
The Figueruelas site was chosen due to its abundant wind and solar resources in the Aragón region, as the area is surrounded by wind turbines and solar farms that will supply energy to power the factory. Spain's renewable energy accounted for 57% of electricity production last year, with the government aiming to increase this to 81% by 2030.
Spain's electricity grid, however, faces challenges. A blackout on 28 April affected Spain and Portugal, prompting political debate. Authorities and Red Eléctrica have stated that the outage was not caused by renewables, and the exact cause is still under investigation, with no cyber-attack detected. Notably, solar generation in mainland Spain reached a record 61.5% of the electricity mix shortly before the outage, which fueled further controversy regarding renewables' role.
Spain's nuclear sector currently contributes about 20% of electricity but plans to close five plants between 2027 and 2035. The owners of the Almaraz nuclear plant are seeking a three-year extension to 2030. The industry argues for maintaining a mix of renewables and nuclear power to ensure grid stability, particularly as Iberia's grid is relatively isolated from the EU, increasing the need for energy storage facilities.
The political landscape in Spain adds uncertainty to the country's energy future. The Socialist-led coalition government faces corruption scandals and potential snap elections. A change to a right-wing government would likely reduce the focus on renewable energy and reintroduce traditional energy sources.
Despite these challenges, the Figueruelas battery factory investment is seen as a validation of Spain's renewable energy-driven model. It signals continued investment and job creation stemming from the region's green transition.
