Spain to invest €4.3bn in EV and battery manufacturing

The Spanish government has earmarked €4.3bn (£3.7bn) to scale up electric vehicle production and manufacturing related accessories such as batteries and so on. This fund is part of an EU-funded national stimulus.

Pedro Sanchez, Spain’s prime minister, has indicated that the grant will be spread across the entire production chain, as the country plans to build its first battery plant, while also improving the manufacturing of electric vehicles.

“It is important for Spain to react and to anticipate this transformation in Europe’s automotive sector,” said Sanchez. 

Figures revealed that private sector participation in this project could reach €19.7bn between 2021 and 2023.

This new project is part of a larger €13bn package aimed at a more sustainable transport and mobility system.

The initiative will also bolster the sector’s economic output by up to 5% by 2030, reaching 15%, a 50% increase on the current 10%. It will also add 140,000 new jobs, bolstering the national economy by 1 to 1.7%.

Spain, already the second-largest auto manufacturer in Europe and home to factories such as Daimler AG, Ford, Opel, Nissan, Renault, and many others, plans to increase the number of EVs in the country from 18,000 to 250.000.