CATL evaluates Spain for a second battery gigafactory to supplement its Zaragoza plant
Executive summary: CATL is evaluating Spain as a site for a second battery gigafactory to complement its existing plant in Zaragoza, competing with up to seven other potential markets. The decision could trigger a multi‑billion euro investment, boost Spain’s EV battery supply chain, create thousands of jobs, and intensify competition for battery plant locations across Europe.
Who is involved: Contemporary Amperex Technology Co. Limited (CATL), Spanish national and regional authorities, competing markets, and stakeholders of the existing Zaragoza plant.
Likely next: CATL is expected to announce its site selection within the next few months, possibly after negotiating incentive packages with Spanish regions; the decision may influence other battery makers’ location choices.
CATL is reportedly studying the construction of a second battery gigafactory in Spain, in addition to the plant it is currently building in Zaragoza. The company is competing with up to seven other potential markets for the investment, highlighting Spain’s attractiveness for EV battery production due to growing demand and potential public incentives. A decision could trigger a multi‑billion‑euro investment, create thousands of jobs and strengthen Spain’s position in the European battery supply chain. The outcome will depend on negotiations over subsidies, environmental permits and competing offers from other countries.
Timeline
- — Renault iniciará a finales de 2028 su megaplan industrial en España (Expansión)
- — CATL estudia instalar en España una nueva gigafactoría de baterías (Expansión)
Analysis — what this means
Likely next events
- CATL expected to announce site decision within 3–6 months
- Negotiations with Spanish regional governments over incentives
- Potential groundbreaking ceremony if Spain is selected
- Possible impact on rival battery projects in other European countries
Sectors affected
- Battery manufacturing
- Electric vehicles
- Renewable energy storage
- Automotive supply chain
Regulatory implications
- State aid approval under EU state aid rules
- Environmental impact assessments required
Historical parallels
- CATL’s Zaragoza gigafactory announcement (2023)
- Northvolt’s Ett factory expansion in Sweden
- Tesla Gigafactory Berlin‑Brandenburg approval process
Key entities
Sources
- CATL estudia instalar en España una nueva gigafactoría de baterías — Expansión
- Renault iniciará a finales de 2028 su megaplan industrial en España — Expansión
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