China battery maker CATL to train Spanish workers for battery plant

By Victoria Waldersee

FIGUERUELAS, Spain (Reuters) -China's CATL will train up to 4,000 workers to operate what will be Spain's biggest battery plant, executives said on Wednesday at a groundbreaking ceremony for the joint venture between the battery maker and Stellantis.

The 4.1-billion-euro ($4.8 billion) project, China's biggest investment in Spain and backed by 300 million euros in European Union funds, highlights Europe's reliance on Chinese technology even as Brussels seeks to tighten trade rules.

Chinese executives and China's ambassador to Spain sought to reassure an audience of ministers, officials and reporters gathered at the site of the plant in northeastern Spain on Wednesday that China was committed to sharing technology to support Europe's energy transition.

"Battery production involves advanced technology and operational expertise accumulated over many years," CATL's director for overseas public affairs said. "Our goal is to make this cutting-edge technology accessible for everyone."

"WATCH AND LEARN"

Spain, Europe's second-largest carmaker, is positioning itself as a battery hub thanks to lower labour costs and industrial energy prices that are about 20% below the EU average. Three more plants are planned, including projects by Envision AESC, Volkswagen's PowerCo and InoBat.

Europe's auto associations are pushing for stricter requirements on local sourcing of components in part to protect them from Chinese rivals, as the European Commission prepares to unveil a new set of measures to bolster the sector.

But Spain lacks technical know-how for battery production, unions and auto industry representatives in Aragon told Reuters.

"We don't know this technology, these components - we've never made them before," said David Romeral, director general of CAAR Aragon, a network of automotive businesses in Aragon. "They're years ahead of us. All we can do is watch and learn."

Spain has fostered close trade relations with China even as Europe adopts a more hawkish stance, with a recent trip by its king and a group of ministers focused on strengthening economic ties.

At the ceremony in Figueruelas on Wednesday, Spain's industry and tourism minister, Jordi Hereu, said technology transfer was "fundamental" to the project. "We need to learn from those who know," Hereu said, adding that Spain was "open and ready to collaborate and build with all countries of the world, especially China."

The plant in Figueruelas, a town of 1,300 people in northeastern Spain, is expected to begin production in late 2026, delivering batteries to Stellantis' car factories, including one located next door to the site.

Andy Wu, chief executive of the joint venture, declined to confirm reports of up to 2,000 workers being flown in from China for the construction phase, saying the firm was still selecting its subcontractors and was open to hiring locals.

It also planned to work with universities to train Spanish workers and bring some staff to its manufacturing base in China for additional training, Wu said.

The proportion of Chinese staff will eventually fall to under 10%, a spokesperson added.

"Before, it was mostly German technology, and now it's Chinese. What difference does it make? Here in Spain, what we offered was always labour," said Roque Ordovás Mangirón, a Stellantis shipping manager.

"As the plant ramps up, there will be more jobs for Spanish workers," Jose Juan Arceiz, secretary general of local union UGT, said. "This project needs to succeed, and everyone has to do their part."

($1 = 0.8640 euros)

(Reporting by Victoria Waldersee in Madrid; Additional reporting by Gergely Szakacs in Budapest, Rachel More in Berlin; Editing by Aislinn Laing, Mark Potter, Emelia Sithole-Matarise and Leslie Adler)