China’s battery giant CATL will begin construction on Wednesday of Spain’s largest battery factory, a €4.1 billion ($4.8 billion) project in partnership with automaker Stellantis.

The move underscores Europe’s growing reliance on Chinese technology even as Brussels pursues tighter trade regulations.

The plant will be located in Figueruelas, a town of 1,300 in northeastern Aragon, and is supported by more than €300 million in European Union funds. Production is expected to start in late 2026. Unions reported that around 2,000 Chinese workers will help build the facility, with plans to hire and train 3,000 Spanish employees once construction is completed.