Stellantis and Leapmotor Eye $200 Million Spanish Factory Investment for B10 EV

Stellantis to Become Strategic Shareholder of Leapmotor with $1.5 Billion Investment

Boosting Electric Vehicle Production in Europe

Stellantis, a global automotive giant, and Leapmotor, an innovative Chinese electric vehicle manufacturer, are reportedly planning a substantial $200 million investment in a factory located in Zaragoza, northeast Spain, to produce the B10 electric crossover, targeting the European market with mass production slated for the first quarter of 2026. This strategic move, highlighted by China’s embassy in Spain and corroborated by an insider familiar with the matter, underscores a pivotal shift in the duo’s manufacturing plans, originally set for Poland but redirected due to geopolitical pressures and economic incentives. The B10, unveiled in Europe in September 2024, marks Leapmotor’s ambitious entry into the overseas electric vehicle market, with Stellantis touting it as a cornerstone for delivering high-tech, affordable electric vehicles to consumers beyond China. This investment not only strengthens their partnership but also positions Spain as an emerging hub for electric vehicle production in Europe, leveraging the country’s competitive advantages such as low labor costs and generous clean energy subsidies.

The partnership between Stellantis and Leapmotor, formalized in October 2023 with Stellantis acquiring a $1.5 billion stake, has birthed Leapmotor International, a 51/49 joint venture aimed at accelerating global electric vehicle sales. This collaboration has already seen Leapmotor’s T03 model produced at Stellantis’ Tychy plant in Poland to sidestep EU tariffs on Chinese-made electric vehicles, a tactic now evolving with the B10’s production shift to Spain. The decision to favor Zaragoza over other considered sites, such as Stellantis’ Eisenach factory in Germany (known for Opel models) and the Trnava plant in Slovakia, reflects a calculated response to China’s private directive to its automakers to avoid significant investments in European nations supporting additional tariffs on Chinese electric vehicles. Spain’s selection, thus, emerges as a blend of economic pragmatism and geopolitical strategy, ensuring the B10 remains competitively priced in Europe while qualifying for substantial Spanish government subsidies through increased local component procurement.

Economic Incentives and Spain’s Rising EV Ecosystem

Spain’s appeal as a manufacturing base for the Stellantis Leapmotor B10 electric crossover production extends beyond its low labor costs. The country has positioned itself as a leader in Europe’s clean energy transition, offering attractive government subsidies for sustainable projects, a factor both companies are actively leveraging by boosting procurement from Spanish suppliers. This move aligns with their goal to secure the highest possible financial incentives, enhancing the project’s viability and profitability. An insider, speaking anonymously due to the non-public nature of the discussions, emphasized that while the final decision is pending, the Zaragoza factory investment signals a long-term commitment to scaling electric vehicle production capacity in Europe, with the B10 serving as the flagship of Leapmotor’s B series designed specifically for international markets.

What sets Spain apart further is its burgeoning electric vehicle ecosystem, already drawing major battery manufacturers like CATL and Envision AESC to establish plants within its borders. This growing infrastructure not only supports the supply chain for electric vehicle production but also fosters innovation and economic growth in regions like Zaragoza. The $200 million investment by Stellantis and Leapmotor could catalyze additional industrial activity, potentially transforming northeast Spain into a key player in the European electric vehicle manufacturing landscape. Unlike Germany and Slovakia, where higher operational costs and less favorable subsidy structures posed challenges, Spain’s combination of affordability and government backing offers a compelling case for this high-stakes project, slated to roll out approximately 15 months from now in early 2026.

Geopolitical Context and Strategic Implications

The shift from Poland to Spain for the Stellantis Leapmotor B10 electric crossover production highlights the intricate interplay of geopolitics and economics shaping the global automotive industry. Initially, Poland’s Tychy plant, already producing the Leapmotor T03, seemed a logical choice for the B10, benefiting from existing infrastructure and tariff avoidance. However, Reuters previously reported that the Chinese government urged its automakers to halt large-scale investments in European countries backing extra tariffs on Chinese electric vehicles, a policy Poland supported. This directive prompted Stellantis and Leapmotor to pivot, exploring alternatives like Eisenach and Trnava before settling on Zaragoza, a decision that balances market access with cost efficiency and subsidy optimization.

This investment also reflects broader trends in the electric vehicle market, where manufacturers are increasingly localizing production to navigate trade barriers and meet regional demand for sustainable transportation. The B10, priced at approximately $15,000, targets cost-conscious European consumers seeking advanced electric vehicle technology, aligning with Stellantis’ Dare Forward 2030 electrification goals and Leapmotor’s plan to introduce at least one new B series model annually over the next three years. By establishing a foothold in Spain, the partnership not only mitigates tariff risks but also taps into a growing market poised for electric vehicle adoption, supported by EU policies promoting zero-emission vehicles.

Detailed Project Timeline and Future Prospects

While Stellantis declined to comment and Leapmotor did not immediately respond to inquiries, the timeline for the Zaragoza factory investment appears firm, with mass production of the B10 electric crossover set to commence in Q1 2026. This schedule aligns with Leapmotor’s aggressive global expansion strategy and Stellantis’ commitment to electrifying its portfolio, positioning the B10 as a critical asset in their joint venture. The $200 million investment encompasses facility upgrades, production line setup, and supplier integration, with efforts already underway to source components locally in Spain, a move that could create jobs and stimulate economic activity in Zaragoza.

Looking ahead, the success of this venture could pave the way for further collaboration between Stellantis and Leapmotor, potentially expanding production to other models in the B series or even integrating additional Stellantis brands into the Spanish factory. Spain’s role as an electric vehicle production hub may also attract competing automakers, amplifying the region’s industrial significance. For now, the focus remains on finalizing the investment and launching the B10, a vehicle poised to redefine affordable electric mobility in Europe, backed by a partnership that bridges Western expertise with Chinese innovation.

Category	Details
Investment Amount	$200 million
Factory Location	Zaragoza, northeast Spain
Production Start Date	First quarter of 2026
Vehicle Model	B10 electric crossover
Original Plan	Poland (Tychy plant), scrapped due to tariff-related geopolitical advice
Alternative Sites Considered	Germany (Eisenach), Slovakia (Trnava)
Strategic Goals	Qualify for Spanish subsidies via local procurement, avoid EU tariffs
Source Information	China’s embassy in Spain, anonymous insider
Company Responses	Stellantis: no comment; Leapmotor: no immediate reply

This $200 million Stellantis Leapmotor Spanish factory investment for B10 electric crossover production exemplifies a forward-thinking approach to electric vehicle manufacturing, blending economic pragmatism with strategic foresight. As Spain solidifies its status as a clean energy leader, the Zaragoza project stands to benefit both the companies and the region, driving innovation and sustainability in the European automotive sector.

Key Citations

• Stellantis to Become Strategic Shareholder of Leapmotor with $1.5 Billion Investment
• Leapmotor International Begins Operations to Expand Global Electric Vehicle Sales
• Stellantis Leapmotor Favour Spain for Production of B10 EV Source Says
• Stellantis Leapmotor Eye $200 Million Investment in Spanish EV Factory
• Will Stellantis and Leapmotor Choose Spain for Next Factory