CATL’s move into Europe is raising questions about Europe’s dependency on Chinese technology after Swedish factory broke down in March.
Chinese battery giant CATL (Contemporary Amperex Technology Co., Limited) is sending 2,000 workers to Europe to construct a €4 billion electric vehicle battery plant with Stellantis, the Financial Times reports.
The move highlights Europe’s reliance on Chinese technology, particularly after the collapse of Sweden’s Northvolt earlier this year, which had been seen as the continent’s best chance to compete in the sector.
Northvolt’s failure in March 2025 followed years of financial strain and production delays. Despite major backing from European governments and carmakers, the company struggled to scale up efficiently and meet cost and volume targets, leaving investors and customers uncertain about its long-term viability.
The new factory is set to be built in Zaragoza in Spain and is expected to employ around 3,000 local workers once operations begin in 2026, but CATL will rely heavily on its own workforce to install advanced production equipment in the meantime.
Observers note that the dependence on Chinese expertise underlines Europe’s vulnerability in the electric vehicle transition, while leaving Nordic innovation efforts struggling to regain ground.