(Yicai) Oct. 19 -- Leapmotor has started production at what it describes as Europe's first standalone battery assembly plant established by a Chinese automaker, supporting its push to manufacture electric vehicles locally.

The facility in Mallén, a town in northeastern Spain, began operations recently. It will initially assemble battery modules and packs for the Leapmotor B10 electric sport utility vehicle, with an annual capacity of 60,000 sets that can eventually be expanded to 200,000, the Hangzhou-based EV maker said.

The plant belongs to Leapmotor International, a joint venture in which European car giant Stellantis holds a 51 percent stake, and Leapmotor owns the remaining 49 percent. The venture is responsible for the production and sales of Leapmotor vehicles in markets outside China.

The facility is about 30 kilometers from Stellantis' Zaragoza vehicle assembly factory, where the first locally manufactured Leapmotor B10 rolled off the production line last week.

Leapmotor's European-made vehicles use a completely knocked down (CKD) manufacturing model, in which vehicles are assembled locally rather than imported as finished products.

Under Leapmotor's approach, most major components are also sourced or manufactured locally, while processes such as stamping, welding, and painting are carried out in Europe, according to founder and Chairman Zhu Jiangming. Zhu expects this approach to become increasingly common among Chinese EV makers expanding overseas.

Local Manufacturing

The partnership draws on both companies' expertise. The Mallén plant's core operations are managed by Leapmotor's team, while the Zaragoza factory is operated by Stellantis, which owns brands including Fiat, Jeep, and Peugeot.

The B10 has joined the Zaragoza plant's production lineup alongside the Opel Corsa, Peugeot 208, and Lancia Ypsilon superminis. The factory has produced 10 million vehicles over more than 40 years, according to Leapmotor.

To prepare for B10 production, engineering teams from Leapmotor and Stellantis adapted the assembly lines and built the battery assembly plant in Mallén.

The decade-old Chinese brand is also expanding its overseas sales network. Leapmotor International has established a network of more than 1,000 outlets in less than two years, according to Xin Tianshu, head of Stellantis' China and Asia-Pacific operations.

The arrival rate of spare parts at the company's central European warehouse has reached 98 percent, exceeding that of some European automakers, Xin said. This helps ensure replacement parts are available for vehicle repairs, benefiting consumers while reducing operating costs for dealers.

Editor: Emmi Laine