Figueruelas to Host €4bn Battery Factory Amid Spain's Renewables Push
The town of Figueruelas in Aragón, Spain, will become the site of a €4 billion battery factory, a joint venture between Chinese firm CATL and automaker Stellantis. The factory is expected to employ about 2,000 Chinese workers directly, with up to 35,000 indirect jobs anticipated in the region.
This investment comes at a time when Spain's renewable energy sector is expanding rapidly, with renewables accounting for 57% of the country's electricity generation last year. The government has set an ambitious target to increase this share to 81% by 2030.
However, challenges remain in ensuring grid stability and energy storage. The Iberian Peninsula's electrical system operates relatively isolated from the rest of the European grid. A blackout on April 28 affected both Spain and Portugal; while the causes are not fully explained, authorities have ruled out renewables as the source of the outage. An unknown event combined with voltage oscillations was cited, although solar generation reached a record 61.5% of the mainland electricity mix a week prior.
Spain also plans to close five nuclear power plants between 2027 and 2035, although the Almaraz plant may seek a three-year extension until 2030. Industry group Foro Nuclear advocates for a mixed energy approach combining renewables and nuclear power to ensure grid stability.
Political developments add uncertainty to Spain's energy policy. The current Socialist-led coalition faces corruption investigations and potential snap elections, posing the possibility that a future right-wing government might reduce emphasis on renewables.
Despite these challenges, the Figueruelas battery plant investment is seen as validation of Spain's renewable energy model and its potential to revitalize local economies and employment.
