Europe’s reliance on Chinese electric vehicle technology deepens as CATL plans to send 2,000 workers to Spain for a €4bn plant with Stellantis. Concerns arise over China keeping control of intellectual property and EU gaining lasting technological benefits, despite the project receiving EU NextGeneration funding. CATL also building a €7bn plant in Hungary.

The deployment of Chinese workers highlights Europe’s skills gap, with doubts about technology sharing. The factory in Figueruelas is expected to employ 3,000 locals but raises concerns about China’s self-sufficiency goals. CATL, on a Pentagon blacklist for alleged military links, is building a lithium-iron-phosphate battery plant in Spain, due to start production in 2026.

Critics warn of risks as CATL is reluctant to share information, fearing industrial espionage. Spanish officials endorse the project, despite concerns of China taking technology and money. The project reflects Europe’s dependence on Chinese EV technology, with local champion Northvolt collapsing and Volkswagen partnering with Chinese Gotion.

The scale of CATL’s expansion in Europe underscores the EU’s reliance on China for critical EV infrastructure. The project in Spain raises questions about technology sharing, industrial espionage, and China’s self-sufficiency goals. Despite concerns, local officials are supportive of the project, highlighting the changing dynamics in the European auto industry.

Read more at Yahoo Finance: EU’s reliance on Chinese EV battery tech deepens with CATL’s expansion in Spain