China is strengthening its hold on Europe’s electric vehicle supply chain. The country is sending thousands of workers to build advanced car battery factories in Spain. This move exposes Europe’s lack of skilled labor in battery manufacturing.
Large-Scale Labor Deployment
Chinese battery giant CATL plans to send 2,000 workers to build a €4 billion battery plant in Zaragoza, Spain. They are partnering with Stellantis. Officials say the project reflects China’s strategy to make Europe dependent on its high-end manufacturing.
Local Stellantis staff are concerned about knowledge transfer. José Juan Arceiz, secretary of Stellantis’ European works council, said, “I don’t think the Chinese want to share the knowhow with us. That’s why they’re bringing in 2,000 workers.”
Broader European Context
This strategy mirrors China’s past projects in Africa. There, tens of thousands of Chinese workers completed infrastructure projects without transferring technical knowledge to locals.
CATL said it will train local workers to run the factory once it is built. It did the same at a battery plant in Germany. CATL is also building a €7 billion facility in Hungary, using some foreign specialists.
Joris Teer, an EU Institute for Security Studies analyst, warned that China guards its intellectual property to maintain an advantage. This is especially true amid geopolitical tensions like the Taiwan conflict.
Strategic and Political Implications
The project cements Spain’s role as a close Chinese partner. Stellantis will receive €298 million in EU NextGeneration funds to support the project. Both the left-wing government of Pedro Sánchez and the conservative People’s Party back it.
Mar Vaquero, vice-president in Aragón’s regional government, said, “Relations with China are important. We must accept that China has high-tech knowledge and will expand abroad.”
The factory will sit on Stellantis land in Figueruelas, an existing hub for Opel, Peugeot, and Lancia vehicles. CATL has not disclosed how many workers will handle construction versus installing proprietary battery equipment.
Europe’s Battery Industry Challenges
Europe faces a growing skills gap in EV battery production. Sweden’s Northvolt collapsed earlier in 2025, showing Europe relies heavily on Chinese technology. Other projects include Volkswagen’s factories in Germany and Valencia, Spain, and AESC Envision’s battery plant in western Spain.
Experts warn that Europe’s dependence on Chinese expertise could pose long-term risks. The concern grows as CATL is on a US Pentagon blacklist for alleged ties to China’s military.
