(Yicai) July 10 -- Envision AESC, an electric vehicle battery maker under Chinese green energy firm Envision Group, has started building its lithium iron phosphate battery gigafactory in Spain, investing over EUR1 billion (USD1.1 billion) in its first phase.

The plant broke ground on July 8 in western Navalmoral de la Mata and is scheduled to become operational in 2026, Envision announced on the same day. It will likely create up to 900 jobs, it pointed out.

The plant will focus on manufacturing and developing advanced LFP batteries, Envision noted, adding that it will be the first carbon-neutral gigafactory in Spain as a part of the company's Net Zero Industrial Park.

The project is a "victory against relocation and industrial decline," said Spanish Prime Minister Pedro Sanchez, thanking Envision for its work in carrying out this initiative that will generate "progress, wealth, and employment" in Spain.

However, this will not be Europe's first LFP battery plant after Serbian battery maker ElevenEs put one into operation in Subotica last April.

Envision was set up in 2007 as a joint venture between Japanese auto giant Nissan Motor and Tokin and bought by Envision Group in 2018, which renamed it from Automotive Energy Supply Corporation in 2019. It has two other battery plants in Europe, located in Sunderland and Douai.

Envision has 13 production bases and some research, development, and engineering centers in China, Japan, the US, the UK, Spain, and France. It has allied with global auto giants, including Renault, Nissan, Toyota, and Mercedes-Benz.

Editor: Martin Kadiev