In a significant move for the electric vehicle (EV) market, Stellantis and its Chinese partner Leapmotor have announced plans to invest $200 million into the establishment of a factory in Zaragoza, northeast Spain, to produce the B10 electric crossover. This decision, confirmed on March 21, 2025, aims to kick off production in the first quarter of 2026.
The partnership marks a strategic pivot for the two companies as they seek to enhance their manufacturing capabilities in Europe. Spain has emerged as the preferred location for the production of the B10, surpassing earlier considerations of sites in Germany and Slovakia. According to sources familiar with the matter, the choice of Zaragoza is driven by relatively low labor costs and the availability of generous government subsidies for clean energy initiatives. This sets the stage for Stellantis and Leapmotor to provide competitively priced electric vehicles tailored for European consumers.
As part of their operational strategy, the two companies are ramping up efforts to procure components locally. This approach aims to secure the highest level of subsidies available from the Spanish government. "Both firms are now ramping up efforts to increase component procurement from suppliers in Spain to qualify for the highest level of subsidies from the government," explained one source directly involved in the negotiations.
Initially, Stellantis and Leapmotor had planned to manufacture the B10 in Poland but abandoned these plans after receiving private guidance from the Chinese government. This instruction advised against making sizable investments in European nations that imposed additional tariffs on Chinese-made EVs, leading to a strategic realignment of their manufacturing base.
The B10 electric crossover is not just another vehicle in the market; it is the first of a new series of EVs that Leapmotor is introducing for international markets. A spokesperson from Leapmotor mentioned, "The B10 is the first of a B series of EVs it is rolling out for overseas markets," highlighting the model's significance as a cornerstone of the company’s expansion strategy.
Furthermore, Stellantis has articulated its vision for the B10 as a means to provide "high-tech, affordable EVs" to consumers beyond China's borders. This aligns with the broader goal of increasing global EV adoption while responding effectively to regional market demands.
The investment in the Spanish factory is very much in line with current trends within the European automotive sector, which is seeing a surge in interest from battery manufacturers and EV producers alike. Recent developments have seen companies like CATL and Envision Group-backed AESC establish plants in Spain, making it a burgeoning hub for electric vehicle production. Such moves solidify Spain's position as a competitive player in the European automotive landscape.
The significance of this investment cannot be understated. It represents a commitment not only to the production of electric vehicles but also to the evolution of Stellantis and Leapmotor amidst shifting trade regulations and economic expectations. According to the Chinese Vice Premier He Lifeng, who sought to reassure international business leaders about China's economic potential, the future of the automobile industry in Europe and beyond hinges on such strategic partnerships.
As the automotive industry navigates an increasingly complex landscape marked by trade tensions and subsidy races, the decision by Stellantis and Leapmotor to solidify their European operation underlines the importance of agility and foresight. Their plans to commence mass production in early 2026 reflect not only an urgent response to current market conditions but also a pioneering step towards establishing a robust supply chain capable of supporting the EV revolution.
Overall, the collaboration between Stellantis and Leapmotor underscores a pivotal shift in how automakers are approaching the European market. The emphasis on local production and supplier partnerships not only enhances operational efficiency but also aligns with growing consumer preferences for sustainable and accessible electric vehicles.
As these companies move forward, their strategic choices will likely resonate across the global automotive landscape, influencing potential investments and shaping consumer attitudes toward electric vehicles in Europe and beyond. The B10’s production will signal a new chapter in their partnership and add depth to the evolving narrative of the automotive industry as it moves towards a cleaner and more sustainable future.
