A memorandum of understanding showed Envision would start building the factory that will produce electrolysers - the machinery separating hydrogen from water - by June 2026.
The Chinese company will finance the project with private partners at a yet-to-be announced location in Spain, it said.
Envision is also set to invest in green hydrogen production, the whole green hydrogen value-chain and helping to develop other related industries such as fertilisers and biochemicals.
The company is currently negotiating further renewable energy deals, specifically in e-methanol, green hydrogen and green infrastructure, with potential Spanish and European partners, the memorandum said.
Green hydrogen is produced using renewable electricity and Spain is positioning itself as a leader in the field in Europe, taking advantage of its abundant wind and solar power potential.
While it is seen as key to decarbonising Europe's economy in the future, green hydrogen projects in general are not competitive without subsidies due to their high costs.
Two years ago, Envision signed a deal with Spain on investments worth 3.8 billion euros ($4.19 billion), including a car battery "giga-factory" and green hydrogen projects.
The document signed on Tuesday did not say whether the planned electrolyser plant was part of the 2022 project.
