The Government reserves more than 5,000 million in aid, although it will only execute 3,450 million at most. The companies will carry out projects for more than 15,000 million in Spain.
The Spanish Government has set itself the objective of positioning Spain as a great hub of electric mobility in Europe. Although there is still a way to go to achieve this, steps have already been taken in that direction, both by vehicle manufacturers and by the Executive, through support plans.
In the transformation that the automotive industry is experiencing towards electromobility, Europe has fallen behind compared to Asia. Traditional car manufacturers have arrived late to what can be called the first generation of electric mobility. This first wave is dominated by brands from Chinawhich began betting on this technology earlier and have million-dollar state support plans.
Despite this delay, Europe maintains its objective of being a relevant player in the automobile industry of the future and for this the electric car is the key. The large European automobile groups (Volkswagen, Stellantis, BMW, Mercedes…) have bet heavily – although late compared to the Chinese ones – on electromobility and have awarded their national plants –VW, BMW or Mercedes-Benz in Germany and Stellantis and Renault in France – its first electric models.
Spain, not having a national manufacturer –seat is owned by the VW group – has so far received few electric vehicle manufacturing projects.
To achieve its goal of being an electromobility hub, the Government wants to attract new investments linked to electric vehicle projects and to do so, it launched the so-called Part of the Electric and Connected Vehicle (VEC)for which it had the money to receive from NextGen to alleviate the effects of the pandemic.
As of today, the second call for Perte VEC is ending, although there will be at least two others. In 2022, the first edition was launched, which was also the first of all Perte, with an ambitious budget allocation of 2,975 million.
Being a novice, the first Perte VEC could be greatly improved, since it had many limits, making it unattractive for companies. Still, a consortium led by VW obtained almost 360 million for a battery gigafactory in Sagunto (Valencia). However, almost 2.22 billion were left undistributed.
The Government made significant changes in the second Perte to gain effectiveness. The budget was almost 1.4 billion divided into two lines (batteries and electric vehicle value chain). The first was closed at the end of 2023 with a distribution of 609 million and the second is still open (to date 298 million have been awarded). Some 490 million would be orphaned.
After a disappointing first Perte VEC, the second saw interest in large megaprojects. Stellantis’ macroplan to build a battery gigafactory in Figueruelas (Zaragoza) and to manufacture new electric cars in Zaragoza and Vigo, with a joint investment of about 4,000 million. The group has received 154 million in aid to date, but aspires to reach 300.
The China Envision received 300 million in public aid under the second Perte VEC. The company is going to build a battery gigafactory with 2.5 billion investments in Navalmoral de la Mata (Cáceres).
Other projects that received aid are Basquevolt in Vitoria for a battery plant, with an associated investment of 700 million. Mercedes-Benz will also receive 130 million for its 1,000 million investment in Vitoria to produce electric vans. Seat is already building a battery assembly plant in Martorell (Barcelona) and the same is for Mobis for the VW plant in Navarra. The two projects will reach 600 million in investment. Seat achieved 48 million in subsidies and Mobis another 13 million.
Next steps
On June 17, the window opens to request the 500 million from the third Perte and at the end of the year a fourth call will arrive with 1,250 million.
In these next editions, it is expected that great projects will be presented. The Slovak InoBat will go all out to reach 200 million in aid that will serve to promote its project to build a battery gigafactory in Valladolid and an R&D center.
Stellantis is also expected to attend, which aspires to more support until reaching 300 million. He will come, in turn, renaultwhich is taking the first steps to transform its centers in Spain to the production of electric vehicles.
In total, adding the public budget and company investments, there is about 20 billion at stake for electrification. The State will contribute 3,450 million, although initially it aspired to exceed 5,000 million.
Companies will invest around 15,000 million in industrial electric car projects in Spain. VW stands out, which will add investments of 3,600 million between the Sagunto gigafactory and the Seat and Mobis assembly plants, within the framework of its electrification plan in Spain for 10,000 million. Stellantis, if it receives the support it craves, will invest 4 billion.
North America surpasses Europe in investment in electric vehicles
Europe is losing the race with North America when it comes to attracting investments linked to electric mobility. The latest T&E report, published yesterday, shows that North America accounted for 37% of investments in electromobility between 2021 and 2023, compared to 26% in Europe and 19% in China.
The document indicates that between 2021 and 2023, 97 billion euros were injected into North America by automobile manufacturers in the production of electric vehicles, batteries, and also in charging infrastructure.
This figure is almost 40% higher than that recorded in Europe, which stood at 70 billion in the same period. China, for its part, received 51 billion for this purpose.
The document states that the growth rate of investment in Europe decreased compared to 2022. The main recipients of projects linked to the electric car in Europe are the United Kingdom, with 26,000 million, Germany, with 13,000 million, and Spain, with 10,000 million. .
65% of investments in North America for electric cars came from foreign manufacturers, driven, above all, by the IRA Act. Europe, however, depends more on its local companies, since they concentrated 80% of the financing destined for electrification. As an example, Stellantis, the second largest European manufacturer, allocated 74% of its investment in the North American region and only 10% to the European continent.
The Chinese group Dongfeng announced yesterday that it will launch seven models of its brands Voyah, MHero and Dongfeng in Spain until 2025. It aims to have 35 dealers by 2025.
