Chinese electric battery company CATL and automaker Stellantis will build a major battery factory in northern Spain, the partners announced Tuesday. They said the plant will be located in Zaragoza and start producing lithium iron phosphate batteries by the end of 2026.

Car giant Stellantis and Chinese manufacturer CATL said Tuesday they would build a $4.3-billion factory to make electric vehicle batteries in Spain, the latest bid to boost Europe's troubled EV drive.

Stellantis and CATL have announced an investment of up to $4.33 billion to establish a low-cost EV battery manufacturing facility in Spain.