(Yicai) Aug. 28 -- Chinese electric vehicle startup Leapmotor is to restart production in Europe at a Stellantis plant in Spain, according to a media report, with output expected to start in the third quarter of next year. 

Hangzhou-based Leapmotor will use a factory in Zaragoza to manufacture its B-series EVs, which are specially designed for overseas markets, Chinese media outlet International Financial News reported today. The first car will be the B10, a compact sport utility vehicle launched this April.

Leapmotor's partnership with Stellantis is key to establishing localized production in Europe. The Amsterdam-based auto giant invested EUR1.5 billion (USD1.7 billion) in 2023 for a 20 percent stake in the Chinese firm and they have also set up a joint venture together to expand into global markets.

Last year, Leapmotor started trial production of the T03 five-door hatchback at a Stellantis factory in Poland. But the venture was later cancelled, Reuters reported in April, with Leapmotor seeking alternative projects in other European nations. 

Amid cutthroat competition in its home market, Leapmotor has made overseas expansion a key growth strategy. So far, it has entered over 30 countries and regions in Europe, the Middle East, Africa and the Asia-Pacific, with more than 600 overseas sales outlets. 

Its deliveries soared 156 percent to 221,664 cars in the first half from a year ago, with overseas sales accounting for 20,375. Both figures were the highest among Chinese EV startups. 

The Zaragoza factory has been operating for 43 years and is one of the largest auto manufacturing plants in Europe. At present, it mainly turns out Stellantis’ Opel and Citroën brands, producing 372,000 vehicles last year, including more than 50,000 EVs. 

Last December, Stellantis entered a new partnership with Chinese battery titan Contemporary Amperex Technology. The pair will jointly invest EUR4.1 billion (USD4.8 billion) in a factory in Zaragoza to produce lithium iron phosphate batteries, with annual capacity set to reach 50 gigawatt hours. 

Editor: Tom Litting