The largest Chinese industrial project in Spain will depend on imported labor from China during its construction phase, according to a government report obtained by Bloomberg ahead of its Friday release. The report states that expatriate laborers will be needed until the fourth quarter of 2028 to erect the €4.1 billion ($4.7 billion) battery facility, which is jointly owned by China's CATL and Stellantis NV.
The document outlines Madrid's framework for what it calls investment "done right in Spain" through three major joint ventures: Chery Automobile Co. with local firm Ebro Motors; a partnership between Stellantis and battery maker CATL; and BAIC with Santana Motors.
Regarding employment, the report projects the three ventures will generate nearly 6,000 direct positions - over 4,000 at the CATL-Stellantis plant, 1,600 at Ebro Motors, and roughly 210 at Santana Motors. The report noted that constructing the plants would create several thousand jobs, though it did not specify how many would be Chinese workers.
Spain has become a leading European voice for collaboration with Chinese manufacturers, attempting to convince Brussels that a middle ground exists between protectionism and free trade. Although the European Commission has increased oversight of Chinese investments and aimed to correct trade deficits, Spain contends that Chinese firms are essential to finish the automotive sector's shift to EVs - as long as the investments create local employment, supply chains, and technology.
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In the early stages, Chinese firms will ship fully assembled vehicle kits for assembly in Spain, yet the goal is to build a European supply chain that supports local businesses. The document describes a gradual approach to technology transfer, but it lacks a definite route for moving the core intellectual property to Spanish hands. Both CATL and Chery intend to provide technology through licensing agreements instead of outright transfers, and the document includes no explicit targets for establishing local R&D centers.
Earlier this year, Stellantis announced it will produce an Opel SUV using EV components supplied by its partner Zhejiang Leapmotor Technology Co. at its Spanish facility starting in 2028. Additionally, the company intends to share a plant near Madrid and has plans for Dongfeng Motor Group Co. to manufacture vehicles in Rennes, France.
These investments represent a key test for Europe's approach to Chinese industrial participation. While Brussels has raised tariffs on Chinese EVs and tightened investment screening, Spain argues that Chinese know-how and capital are crucial to achieving Europe's EV transition goals. The three joint ventures combined could produce hundreds of thousands of EVs and batteries annually, but the reliance on imported labor and licensed technology raises questions about long-term local benefits.
The lack of explicit commitments to establish research centers in Spain suggests that the country may remain a manufacturing hub rather than a development center. Nonetheless, the projects are expected to inject billions into the Spanish economy and create thousands of jobs, easing the transition for traditional automakers like Stellantis and local firms like Ebro and Santana.
Spain's open stance contrasts with other EU members that have advocated for stricter limits on Chinese industrial involvement. The country maintains that without Chinese capital and technology, Europe's EV transition could falter, leaving the region at a competitive disadvantage. The outcome of these joint ventures may shape future EU policy on balancing protectionism with the need for foreign investment.
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