ZARAGOZA -- A joint venture between China's CATL and multinational automaker Stellantis broke ground on Tuesday for a major lithium iron phosphate (LFP) battery plant in Spain's northeastern region of Aragon, marking one of the largest Chinese industrial investments in the country.

With a planned investment of 4.1 billion euros ($4.75 billion), the facility will run entirely on renewable energy and is expected to begin production by the end of 2026, delivering up to 50 GWh of LFP batteries a year for electric vehicles.

Spanish Minister of Industry, Trade and Tourism Jordi Hereu said the groundbreaking ceremony represents a strategic milestone in Spain's new-energy transition and industrial modernization.

He stressed that the project reflects strong confidence between the Spanish and Chinese partners and underscores Spain's role as a key player in Europe's efforts to promote electrification.

Aragon regional president Jorge Azcon said the plant strengthens the region's long-standing automotive ecosystem, which includes more than 300 companies linked to the Stellantis factory in Figueruelas. He noted that while factories elsewhere in Europe are facing closures and job losses, Aragon is "opening a new cycle of growth by laying this cornerstone."

Wu Qi, CEO of Contemporary Star Energy - the joint venture set up by CATL and Stellantis - said the project is built on years of cooperation and shared vision. He said the new plant will bring long-term industrial opportunities, contribute to local development, and deepen collaboration on clean energy and technology.

During the ceremony, representatives from both sides sealed copies of Spain's Heraldo de Aragon and China's People's Daily into a time capsule to be placed at the factory's entrance as a symbol of long-term commitment to the project's future.