The Spanish government has announced a series of measures to support the automotive sector by granting substantial state aid to carmakers Stellantis and Volkswagen to develop their production capacity for electric vehicle batteries. These investments, aimed at accelerating the electrification of the automotive industry, will create new jobs and attract additional funds from the beneficiary companies.
Financial support for Stellantis
One of the biggest beneficiaries of this program is the Stellantis group, which has received a grant of €272 million, plus a loan of €26 million. These funds will go towards the development of strategic facilities in Spain, including plants in Vigo, Tarragona and Barcelona. The largest funds, €133 million, will go to the Stellantis plant in Figueruelas, which will develop a production line for electric batteries. It represents the biggest investment in the Spanish automotive sector in recent years. Also, the day before the announcement, the Figueruelas plant received an additional €14 million in aid for decarbonization projects, underlining the Spanish government’s commitment to fighting climate change and supporting the transition to zero-emission vehicles.
Volkswagen and investment in PowerCo
The Volkswagen Group, through its subsidiary PowerCo, has received €152 million in government funding to build a battery factory. The funding for the project has been increased from €98 million, following changes to the original construction plans. The PowerCo project is seen as a key element in the VW Group’s strategy to expand its presence in the electric vehicle market and contribute to Spain’s energy transition.
Spain’s commitment to electrification
Spain’s Minister of Industry and Tourism has underlined the importance of this program to support the automotive industry, declaring that “electrification cannot come back”. Spain is devoting a significant part of its funds to boosting the electrification of the automotive sector, with this industrial program being the largest in the country’s history in terms of financial endowment. The government is thus strengthening its position in the transition to a sustainable future in which electric vehicles will become the norm.
Economic impact and jobs
These investments are expected to have a significant impact on the Spanish economy, generating thousands of new jobs and stimulating the development of modern industrial ecosystems centered on green technologies. In addition, the collaboration between the government and major car manufacturers demonstrates a strong commitment to ensure an efficient transition to electric vehicles, both at national and European level. With this state aid, the Spanish government reaffirms its support for the electrification of the automotive sector, facilitating the development of critical infrastructure for the production of electric vehicles and strengthening its leadership role in the industry. Stellantis and Volkswagen, through their projects, are becoming central players in this process of transformation of the automotive market, and the impact of these investments will be felt in the long term, both economically and environmentally.
