Leapmotor to Resume European Production in Spain, Reports Say

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A Chinese electric vehicle startup is preparing to resume production in Europe at a Stellantis facility in Spain, with plans to begin operations in the third quarter of next year, according to recent reports.

Based in Hangzhou, the company will utilize a factory located in Zaragoza to produce its B-series EVs, which are tailored specifically for international markets. The initial model set for production is the B10, a compact SUV introduced earlier this year in April.

Partnering with Stellantis is a strategic move to establish localized manufacturing within Europe. The Amsterdam-based automaker invested approximately 1.5 billion euros (roughly 1.7 billion US dollars) in 2023 for a 20% ownership stake in the company. They have also formed a joint venture to expand their global footprint.

Last year, the company conducted trial runs of the T03 five-door hatchback at a Stellantis plant in Poland. However, that project was eventually canceled in April, prompting the company to explore alternative opportunities at other European sites.

Amid intense competition in its domestic market, the company has prioritized international expansion. It has established a presence in over 30 countries across Europe, the Middle East, Africa, and the Asia-Pacific, operating more than 600 sales outlets worldwide.

In the first half of the year, total vehicle deliveries increased by 156% compared to the previous year, reaching 221,664 units, with overseas sales accounting for 20,375 vehicles. These figures represent the highest among Chinese EV startups.

The Zaragoza plant has a 43-year history and is among Europe’s largest automotive manufacturing facilities. It primarily produces vehicles for Stellantis’ Opel and Citroën brands, manufacturing 372,000 vehicles last year, including over 50,000 electric models.

In December, Stellantis announced a new partnership with Chinese battery producer CATL. The two companies plan to invest around 4.1 billion euros (about 4.8 billion US dollars) to build a lithium iron phosphate battery factory in Zaragoza, with an expected annual capacity of 50 gigawatt hours.