Gasgoo,According to Reuters, on October 8, Spanish Industry Minister Jordi Hereu said that the Spanish government has provided 133 million euros (about 146 million US dollars) in subsidies to automaker Stellantis for the company’s planned battery manufacturing plant near the northeastern Spanish city of Zaragoza.
According to reports, the funds provided by the Spanish government to Stellantis this time are part of a government aid program. The program aims to use the EU epidemic relief fund to promote the development of the electric vehicle and battery industries. The Spanish Ministry of Industry said in a statement that with the latest subsidies, the amount of subsidies Stellantis has received from the Spanish government is close to 300 million euros.
For now, Stellantis has not decided whether to build a battery production plant in Zaragoza. According to the company’s previous statement, the proposed battery plant requires an investment of approximately 2.5 billion euros and will create 3,000 jobs. By providing subsidies to Stellantis, the Spanish government hopes to convince the company to finalize the battery factory project and consolidate Spain’s position as a major automotive center in Europe.
A spokesman for Stellantis told Reuters that the company welcomed the (Spanish) government’s decision, but added that the project is still “pending all regulatory approvals” and will be announced at the “right time.”
In addition, the Spanish Ministry of Industry will also provide a subsidy of 152 million euros for the battery factory of PowerCo, a battery manufacturing subsidiary of Volkswagen Group, located in the eastern Spanish city of Sagunto, higher than the initial plan of 98 million euros.