The Chinese manufacturer CATL (Contemporary Amperex Technology Co. Limited) has established itself as the world’s largest producer of batteries for electric vehicles. According to the latest industry data, it controls 37.9% of the global market, far ahead of its main competitor, BYD, which holds 17.2%. This dominant position has made CATL a key partner for virtually all major automotive manufacturers, including Tesla, Volkswagen, BMW, Mercedes-Benz, Ford, and Geely.
“In Europe, for Europe”: the localization strategy
In September, during the IAA Munich Motor Show, CATL presented its strategy “In Europe, for Europe”, which aims to tailor its production to the specific needs of European customers and strengthen its industrial presence on the continent. The message is clear: manufacture close to the end market to reduce logistical risks, respond to regulatory demands, and gain legitimacy as a strategic supplier for Europe’s energy transition.
This strategy materializes in an industrial network that already includes two operational plants in Europe and a third one in the development phase. The first was inaugurated in 2018 in Erfurt (Germany) and the second in 2022 in Debrecen (Hungary). The third, announced in 2024, will be located in Zaragoza and will develop as a joint venture with Stellantis, with a joint investment of €4.1 billion.
The Zaragoza project: record investment and specialized employment
The future Aragonese plant, specialized in LFP (lithium iron phosphate) batteries, will occupy an area equivalent to 100 football fields and is expected to start operations by the end of 2026. The project is part of a broader industrial ecosystem, as Stellantis also plans to assemble Leapmotor vehicles at its current facilities in Zaragoza, reinforcing Aragon’s role as an electromobility hub.
However, the project has sparked debate. The Financial Times reported on September 27 that CATL plans to bring in up to 2,000 workers from China to set up the plant, raising concerns about the competitiveness of the European battery industry and potential technological dependency.
Knowledge transfer and technological dependency
The British newspaper highlighted the risk that Europe could become trapped in a technological dependence on China, especially if there is no effective knowledge transfer. The article quoted Stellantis executives stating that CATL does not intend to share its key “know-how,” which would limit local industrial learning.
From Beijing, the response was swift. Global Times, a Chinese state media outlet, characterized these concerns as stemming from Western “geopolitical anxiety” and argued that collaboration with CATL represents an opportunity for innovation and mutual benefit for Europe in the long-term development of new energies.
A debate with historical precedents
The controversy is not new. Since the early 1980s, when Western manufacturers began investing in China, Chinese authorities required technology transfer agreements within joint ventures with local partners. It was also common to send European and American executives and technicians to set up industrial plants in the Asian country.
In this context, some European analysts question whether the current balance has shifted: Europe is welcoming large Chinese investments, but without the same guarantees of knowledge transfer that China demanded in the past.
The American precedent
The European case is better understood in light of CATL’s experience in the United States. The company planned an LFP battery plant in Michigan alongside Ford, but the initiative faced strong union and political opposition. The project was halted in 2023 and has not been publicly reconsidered.
At that time, it was already debated that the plant would be limited to the assembly of cells produced in China, incorporating battery management systems (BMS). The industry assumes that the true technological value lies in the manufacturing of the cells, while final assembly is a relatively standardized process.
By early 2025, the United States took a further step by designating CATL as a “Chinese military company,” a decision aimed at protecting its electric vehicle supply chain that effectively closes the door to future joint ventures of the Chinese group on U.S. soil.
Europe facing a strategic decision
With its European expansion, CATL finds itself at the center of a key debate for the European Union’s industrial policy: how to attract strategic foreign investment without compromising technological autonomy. The Zaragoza plant represents a historic opportunity in terms of employment, investment, and industrial positioning, but it also raises questions about the collaboration model, local talent training, and the building of a true European battery value chain.
For Spanish entrepreneurs and industrial decision-makers, the challenge will be to maximize the ripple effect of such projects, integrate them into the local productive fabric, and ensure that the energy transition translates not only into assembly capacity but also into knowledge, innovation, and long-term competitiveness.
