Spain’s electric vehicle industry receives a significant boost with a €190 million investment in several key projects. This initiative is part of the national strategy to reduce CO2 emissions and promote sustainable mobility.
Stellantis and Lotte in the foreground
At the heart of this investment, Stellantis and Lotte stand out. Stellantis receives an allocation of 56 million euros for its gigafactory in Zaragoza, while Lotte receives 49 million euros. These funds will help boost battery production and strengthen Spain’s position in the European automotive industry.
Ongoing dialogue on additional financing
The government is maintaining a dialogue with Stellantis to explore additional financing avenues, thus guaranteeing the project’s completion. This collaboration underlines the government’s commitment to supporting the automotive industry, particularly in the field of electric vehicles.
Financing comparison
Although the amount granted to Stellantis is lower than that granted to other major players such as China’s Envision and Volkswagen, the company ensures the economic viability of its project through close collaboration at national and regional levels.
Use of EU funds
With this second phase of funding, the Ministry has announced that it has allocated 95% of the European funds, totalling 529 million euros. A third phase is planned for 2024, with 1.2 billion euros available, underlining Spain’s ambition to become a leader in the electric vehicle sector.
Spain’s ambitious goals
Spain is aiming for 5.5 million electric vehicles by 2030, representing around one-sixth of its vehicle fleet. This plan is part of a wider effort to reduce CO2 emissions in the transport sector by 32 million metric tons, corresponding to a quarter of the total CO2 emissions reduction target.
The dynamism of the raw materials market, particularly lithium hydroxide, remains an important factor. With Platts valuing the price at $22,500/mt in early November, price fluctuations will have a significant impact on the electric vehicle battery industry.
This major investment in Spain marks a decisive step in the transition to electric mobility. By focusing on gigafactories and supporting key players such as Stellantis and Lotte, Spain is making a firm commitment to reducing CO2 emissions.
