1. Due to rising EU tariffs on Chinese EVs and tighter scrutiny of Chinese investment, Chinese automakers and clean energy firms are increasingly choosing Spain as their manufacturing base in the EU. [para. 1][para. 2] Companies like Chery, CATL, and SAIC are using Spain as a gateway to the European market, localizing production to maintain customer access amid a protectionist trade environment. [para. 2] For example, SAIC's MG brand selected Galicia for its first European vehicle plant and logistics hub, with an initial investment of about 200 million euros, aiming for production in 2028. [para. 3]
2. This wave of investment accelerated after 2024 when the EU imposed higher tariffs on China-made EVs and tightened scrutiny of Chinese clean energy investments, while also seeking to strengthen domestic manufacturing capacity. [para. 4] Spain's appeal lies in its established automotive supply chains, proximity to other major European markets, and a welcoming stance toward Chinese investment. [para. 5] Producing in Spain through joint ventures that revive underutilized factories allows Chinese firms to stay close to customers and reduce exposure to trade barriers, while Spain gains capital, jobs, and support for its EV transition. [para. 6][para. 15] Spain's mature manufacturing base and supplier network, lower labor costs, and strong bilateral ties further enhance its attractiveness. [para. 7][para. 8] Geography enables efficient service to other western European auto markets, and existing underutilized plants offer opportunities without building from scratch. [para. 9][para. 10]
3. Over the past five years, Chinese companies have invested over 1.1 billion euros in Catalonia, making it the EU's sixth-largest destination for Chinese investment by project count. [para. 11] The regional government encourages joint ventures with local companies and seeks projects that strengthen supply chains, bring technology, and create opportunities for local suppliers. [para. 12] The region is now courting additional investment in advanced manufacturing, semiconductors, AI, batteries, and green technologies. [para. 13]
4. Chery's 2024 joint venture with EV Motors to revive a former Nissan factory in Barcelona showcases successful cooperation. [para. 14] The partners repurpose existing infrastructure and preserve jobs. [para. 15] The plant produces Chery's Omoda and Ebro models, with annual output projected to reach 50,000 vehicles by 2027 and 150,000 by 2029. [para. 16] The project restored about 2,000 jobs and helps Catalonia strengthen its industrial value chain. [para. 17] Many Chinese-backed projects in Barcelona are structured as joint ventures, making it easier to enter the local market. [para. 19][para. 20]
5. The trend extends beyond Barcelona. Stellantis plans to deepen cooperation with Chinese EV-maker Leapmotor, replacing its main model production at a Madrid plant with a new Leapmotor vehicle, production starting as early as 2028. [para. 21] They are also discussing transferring plant ownership to their joint venture's Spanish subsidiary to make it a key hub for Leapmotor's global models. [para. 22] BYD has also been in talks with European automakers about taking over underutilized factories. [para. 23] Beyond vehicles, Stellantis and CATL agreed in 2024 to invest up to 4.1 billion euros in a 50-50 joint venture for a lithium iron phosphate battery plant in Zaragoza, expected to begin production by end of 2026. [para. 24]
AI generated, for reference only
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