CATL and Stellantis to Invest €4bn in Spanish Battery Factory Amid Shifting Energy Landscape
CATL and Stellantis have announced plans to invest €4 billion in a battery factory located in Figueruelas, Aragón. This project is expected to employ around 2,000 Chinese workers and could create up to 35,000 indirect jobs, with Yao Jing describing it as among the largest Chinese investments in Europe.
The battery plant site was selected due to its location in an area rich in wind and solar energy, supported by extensive wind and solar farms. This aligns with Spain's energy model that emphasizes renewables, with renewables accounting for about one-third of electricity supply in 2017 and rising to 57% last year. The Spanish government aims to increase renewables to 81% of electricity generation by 2030. Prime Minister Pedro Sánchez has positioned this renewable energy policy as central to Spain's energy future.
Despite this progress, Spain experienced a major blackout on 28 April that affected both Spain and Portugal. Officials have indicated the cause remains unclear, citing an unknown system event and voltage oscillations. A cyber-attack was ruled out, and authorities insisted that renewables were not responsible. Notably, solar generation reached a mainland Spain record of 61.5% of electricity only a week before the blackout, which has fueled debate about the role of renewables.
Since April, Spain's electricity mix has shifted towards greater natural gas usage, with storage capacity identified as a critical area needing improvement.
Regarding nuclear power, which currently supplies about 20% of Spain's electricity, plans are in place to close five nuclear plants between 2027 and 2035. The Almaraz plant is seeking a life extension to 2030. Foro Nuclear has advocated for a balanced energy mix of renewables and nuclear and pointed out that Spain is unique in planning to close operating reactors.
Political uncertainty surrounds Spain's energy policies. The Socialist coalition government faces corruption scandals and the possibility of a snap election. A potential right-wing government following such an election might prioritize renewables less than the current administration.
