The Spanish government has granted auto maker Stellantis a further €146 million ($159 million) to bring its grant up to nearly €300 million for its potential battery making plant near Zaragoza, northeast Spain.
With its recent grant for Volkswagen’s project in Sagunto being increased from €98 million to €152 million, it is clear that the Spanish government hopes to establish Spain as a major European centre for EV auto production.
Stellantis – which produces Fiat and Peugeot vehicles amongst others – already has a car plant in Figuerelas, near Zaragoza, but the company has not yet confirmed if the gigafactory will be built alongside. The company told Reuters the project was subject to completion of “all regulatory approvals.” If it goes ahead, the project will be in partnership with China’s CATL and is projected to create around 3,000 jobs, altogether requiring an investment of nearly €2.5 billion.
Speaking to BEST at the Batteries Event in Lyon, France, Avicenne director Christophe Pillot said he believed the future health of European EV battery manufacture lay in partnership with Chinese companies. The Europeans are some 15 years behind China in terms of technology, he said.
In September, Stellantis announced a suspension to production of the fully electric Fiat 500 small car for four weeks due to sluggish demand.
