Spain becomes a major hub for European electric vehicle production

Spain is emerging as a major European hub for the automotive industry, particularly for electric vehicle (EV) production involving Chinese manufacturers and international brands.

In Valencia, Ford and Geely have agreed to establish a joint venture at the Almussafes plant. Ford will hold a 66 percent stake, while Geely will hold 34 percent. The partnership aims to share production capacities and reduce development costs, with plans to produce five models—three under the Ford brand and two electric models from Geely. The venture is expected to begin operations in the first half of 2027, with vehicle production slated for 2028.

Further expansion is occurring in Zaragoza, where Stellantis plans to produce several models, including those from Leapmotor such as the B05 and B10. These models will also support the production of electric SUVs for Opel. By manufacturing locally, these companies aim to bypass import tariffs on Chinese vehicles. Other manufacturers, including SAIC (MG) and CATL for battery components, are also increasing their presence in the region to support the transition to electromobility.