CATL Battery Factory in Spain, Lithium Mine in Yichun

Support CleanTechnica's work through a Substack subscription or on Stripe.

CATL is the largest EV battery producer in the world. It continues to progress, with the latest news being a factory under construction in Spain and restarting of a lithium mine in China.

CATL + Stellantis Battery Factory in Spain

The US and Japan led on electric vehicles for a little while, and then Europe did, but in recent years, it’s 100% clear China is the king of the EV world. Europe and the US have even put up big barriers to Chinese electric vehicles and EV suppliers in order to try to protect their aging, legacy, fossil-fueled industries. Europe is at least letting Chinese company build factories within its borders, though. And that brings us to Spain.

CATL is now building an EV battery factory along with European OEM Stellantis in Zaragoza, Spain. A groundbreaking ceremony took place one month ago. “This event marks the start of construction of one of Europe’s most advanced facilities, designed to operate as a carbon-neutral plant with a capacity of up to 50 GWh,” CATL announced at the time.

“During the ceremony, a time capsule was sealed to remain closed until 2045, containing objects and testimonies that reflect the vision and spirit of collaboration driving this project.” Interesting, and fun. But will Stellantis and CATL both survive into 2045? One of them probably will. As for the other… we’ll see. (The time capsule ceremony is pictured above.)

“The gigafactory will play a key role in the transition toward affordable and sustainable electric mobility, supporting Stellantis’ strategic plan and CATL’s global vision. The project incorporates cutting-edge technologies such as Cell-to-Body design, enabling cells to be integrated directly into the vehicle structure, improving efficiency and safety.”

The factory is also being 80% powered by renewable energy, and uses Industry 4.0 standards for sustainable, intelligent processes.

The project will create 4,000 direct jobs as well as thousands of indirect jobs according to the companies, and requires €4.1 billion of investment.

“This project will strengthen the European battery value chain, foster collaboration with local universities and training centers, and attract strategic suppliers, consolidating the region as a hub of innovation and competitiveness in electric mobility,” CATL adds.

CATL To Restart Lithium Mine

CATL’s Jianxiawo lithium mine was made to pause operations in August due to mining permit issues. The company is now expected to restart the mine in February after the Chinese New Year.

This is a key lithium mine for the EV battery giant, so shutting it down led to a surge in lithium carbonate prices.

“Late last month, Bloomberg reported that CATL had developed preliminary plans to restart the Jianxiawo mine by early December,” CnEVPost reports. “On December 19, Yichun released the first environmental impact assessment information disclosure for the project, the Jiemian report noted. […] Lithium carbonate and iron phosphate are the primary raw materials for lithium iron phosphate (LFP). Yichun, located in Jiangxi province, is a lithium production hub often referred to as the ‘Lithium Capital of Asia.’ Over recent months, lithium prices have rebounded, gradually impacting battery costs.”

So, we will see what happens, but hopefully this is a positive sign for lithium prices and battery prices in 2026.