Spain receives €3 billion European emergency funds for electric mobility

by Lorraine Williamson
electric car factory Spain

MADRID – Prime Minister Sánchez sees the electric car sector becoming an important part of the economy in Spain.

Last Thursday, the European Commission gave the green light for a major investment in the Spanish Program for Economic Recovery and Transformation (PERTE), to stimulate electric cars and the necessary infrastructure. 

Moreover, with this investment, the program provides research, development and innovation, environmental protection and energy efficiency throughout the electric vehicle industry chain. Part of the investment will come from the recovery tool NextGenerationEU, the largest stimulus package ever, intended for a greener, more digital and more empowered Europe after the corona crisis. 

“Spain’s first strategic Project is a unique opportunity to revitalise the automotive sector from a sustainable and digital perspective. We will continue to make progress on our path to a new mobility model,” Prime Minister Sánches said on social media last Thursday after the news was announced. Furthermore, the European Commission has allocated €3 billion to this new mobility plan. 

Electric car production in Spain 

With the investment in the PERTE, two major projects can be launched. Firstly, an innovation at the Seat and Volkswagen factories in Martorell (Bardelona) and Landaben (Pamplona). This is so they can assemble fully electric cars. And, secondly, the major project is the construction of a battery factory to supply the aforementioned factories. 

European hub in electric car industry 

The Spanish government calculated the current investment from the European fund will trigger a total investment of around €19 billion. However, this will be spread over the next three years. According to the Spanish Prime Minister, the objective is not to return to pre-coronavirus levels. But to transform the auto sector into a major engine for the Spanish economy. Consequently, this should make up 15% of gross domestic product (GDP) by 2030. According to Sánchez, Spain would then be the main hub for European electromobility. 

Cogesa Expats

The €3 billion approved by the EU will be supplemented by other programs aimed at promoting electric driving. This includes the Plan Moves. With this plan, the autonomous regions can encourage residents to purchase an electric car. And charging points will be realised with an investment of €800 million. Another example is an investment in the Technological Program for Sustainable Mobility of the Spanish Centre for Technological and Industrial Development. 

140,000 new jobs 

The Spanish government expects PERTE to create 140,000 new jobs in Spain. By 2025, this means that 250,000 electric cars must have received a license plate and between 80,000 and 110,000 charging stations must have been created. 

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