Stellantis Secures €133M from Spain for Proposed EV Battery Plant

Spain has taken a significant step in boosting its electric vehicle (EV) industry by granting a €133 million ($146 million) subsidy to automaker Stellantis. The aid is to support the construction of a potential battery-making plant near Zaragoza as part of the Spanish government’s initiative to develop the country’s EV and battery sector.

Government Push to Foster EV Growth – 

The subsidy comes from Spain’s broader government aid program, which is funded by the European Union’s pandemic relief package. This initiative seeks to position Spain as a leading European hub for electric vehicles, with the battery sector playing a crucial role in that strategy.

Industry Minister Jordi Hereu announced the subsidy on Tuesday, emphasizing that this financial support could be key in encouraging Stellantis to finalize its plans for the battery plant. If confirmed, the project would significantly boost Spain’s automotive industry and contribute to the country’s growing importance in Europe’s EV market.

Stellantis’ Zaragoza Gigafactory: A Major Investment – 

Stellantis, which owns well-known brands like Jeep®, Fiat, Citroën, Peugeot, and Lancia, is currently evaluating whether to proceed with constructing the battery-manufacturing complex, also known as a Gigafactory. The plant would be in Figueruelas, near Zaragoza, next to Stellantis’ major car production facilities.

The potential project involves a partnership with Chinese battery giant Contemporary Amperex Technology Co., Limited (CATL) and is expected to require an investment of nearly €2.5 billion ($2.75 billion). According to Stellantis, the Gigafactory could create around 3,000 new jobs, substantially boosting the local economy and strengthening Spain’s position in the European EV industry.

Awaiting Final Approval – 

A Stellantis spokesperson expressed gratitude for the Spanish government’s support but clarified that the project is still under consideration and awaits regulatory approval. “We welcome the government’s decision. However, the project remains subject to completion of all regulatory processes, and we will make further announcements at the appropriate time,” the spokesperson said.

Spain’s Ministry of Industry confirmed in a statement that this latest subsidy brings the total government aid granted to Stellantis to nearly €300 million ($329 million), further underlining the strategic importance of the potential gigafactory for the nation’s EV ambitions.

Additional Support for Other EV Battery Projects – 

In addition to Stellantis, the Spanish government is also increasing support for other battery-manufacturing projects. The ministry announced a subsidy boost for Volkswagen’s PowerCo, a battery subsidiary, for its Gigafactory in Sagunto. The aid for this project has been increased to €152 million ($167 million), up from a previous allocation of €98 million ($108 million).

Source: Reuters