The Chinese-language website of French international broadcaster Radio France Internationale (RFI) published an article on the 29th titled 'Chinese Companies Invest in Spain's Electric Vehicle (EV) Sector Once Again.'

According to the article, Germany's Volkswagen (VW), through its subsidiary PowerCo, is building a battery factory in Valencia, Spain, and has simultaneously welcomed Chinese automotive battery giant Gotion High-tech (国軒高科) as a shareholder. Gotion High-tech will invest 1.1 billion euros (approximately 200 billion yen) to acquire a 49% stake in the factory.

At present, neither party has disclosed which vehicle models the batteries produced at the Valencia factory will be installed in.

According to the article, Chinese automotive battery giant Contemporary Amperex Technology Co. Ltd. (CATL) is proceeding with plans to build a large factory in Spain in cooperation with Stellantis. Furthermore, Chinese automotive companies such as Chery (奇瑞汽車) have also invested in Spain until now.

The article also stated that 'the background for Chinese (automotive-related) manufacturers gathering in Spain lies in the needs of both sides,' pointing out that Spain has a strong production base including factories, skilled workers, subcontractors, and well-developed infrastructure, while having only a few domestic brands. It argued, 'In particular, SEAT is currently in a difficult situation and may face a very challenging future. Attracting foreign manufacturers is extremely important for maintaining this sector of the Spanish economy.'

On the other hand, it pointed out that 'Chinese brands also have sufficient motivation to produce cars in Europe,' stating that 'they can avoid tariffs, adapt their models to environmental performance evaluation standards, and become eligible for financial support.' (Translation/Editing: Noya)