CATL and Stellantis Approved Battery Factory Loan
The partners have finalized a 50 million euro loan to support the construction and operation of a new battery factory in Spain.
Updated on Oct. 8, 2026 in Electric Vehicles
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CATL has committed a 50 million euro loan to Contemporary Star Energy S.L., a joint venture between the battery maker and Stellantis. The funds are earmarked for building and operating a new electric vehicle battery plant in Spain.
Why it matters
This financing supports the development of new manufacturing capacity for electric vehicle components. By investing in regional battery production, the joint venture aims to scale operations for the growing EV market.
The loan for Contemporary Star Energy S.L. carries a 3.55% fixed annual interest rate and a 12-month term. This capital injection supports the joint venture, which is held equally by CATL and subsidiaries of Stellantis.
The players
CATL
A global leader in lithium-ion battery development and manufacturing for the electric vehicle industry.
Stellantis
A multinational automotive group that manages a diverse portfolio of vehicle brands and is aggressively transitioning to electrification.
The details
Contemporary Star Energy S.L. may access the loan in single or multiple tranches to cover construction and daily factory expenses. The agreement allows the principal and interest to be converted into equity shares of the joint venture, providing flexibility in how the capital is structured as the project matures.
Timeline
January 31, 2025: Contemporary Star Energy S.L. was incorporated.
September 30, 2026: The CATL board approved the loan proposal.
The Home Front
This project reflects the industry-wide transition toward localizing the electric vehicle battery supply chain to reduce reliance on long-distance imports. It marks a significant capital commitment toward regionalizing manufacturing as part of the broader push for sustainable transport infrastructure.
While this news impacts the manufacturing landscape, it does not require immediate action from your household. You may want to keep an eye on how these regional production efforts influence future electric vehicle availability and pricing in your local market.
The takeaway
This loan highlights the ongoing capital investment needed to expand electric vehicle infrastructure globally. Keep track of such manufacturing partnerships, as they are key indicators of when and where new, more accessible EV technologies will eventually hit the market.
Further reading
Learn more about the latest innovations and market shifts in our Electric Vehicles section.
Source note: This article includes information reported by Energytrend.
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