In 2023, Stellantis paid €1.5 billion ($1.77 billion) for a 20 percent stake in Leapmotor and acquired a 51 percent stake in its international division, allowing it to sell and distribute the brand’s vehicles outside of China. Now, the tie-up between the two companies is deepening, with confirmation that Leapmotor will be able to build vehicles at one of Stellantis’s factories in Spain.

Stellantis chief executive Antonio Filosa confirmed the news during a recent financial event. While he did not confirm which Spanish factory Leapmotor will be able to use, the move would allow Leapmotor to avoid the hefty EU tariffs applied to EVs from China. Currently, the automaker is subject to up to 30.7 percent tariffs for selling its vehicles locally.

Read: New Leapmotor B10 Goes After Europe’s EV Market With Stellantis In Its Corner

“We have recently announced an industrial partnership to give Leapmotor capacity at one of our Spanish plants to build their cars on their platform,” Filosa said during the event, reports Auto News. “That will start very soon.”

While Stellantis hasn’t said which Leapmotor models will be built in Spain, a recent report indicated that the B10 electric SUV is the most likely candidate. Leapmotor is thought to be investing up to $200 million into one of Stellantis’s Spanish factories to make it happen. Zaragoza has been reported as a potential location for Leapmotor’s local production base, as Stellantis is building a massive battery gigafactory there with CATL, set to open next year.

Leapmotor’s European Plans

Interestingly, Leapmotor had been assembling the T03 minicar at a Stellantis factory in Tychy, Poland. However, production of it ended in April. There were also plans for the B10 to be produced in Poland, but these plans were ditched in 2030.

Leapmotor lifted the veil on the European-spec B10 late last year and recently opened the order books for it. Positioned as a rival to the likes of the Kia EV3, BYD Atto 3, and Honda Kona Electric, the B10 starts at €29,900 ($35,400).