The Spanish government has approved substantial subsidies for two major players in the battery manufacturing sector, Envision and Seat. Envision has secured a grant of 200 million euros and a loan of 100 million euros for its battery cell factory project in Navalmoral de la Mata, while Seat is set to receive 47 million euros in subsidies for its battery assembly plant near Barcelona.
Envision's ambitious battery cell factory project, announced in July 2022 with a production start target of 2025, aims to produce 50 GWh of battery cells annually. The company's total investment exceeds 1.3 billion euros, with the subsidy, consisting of the grant and loan, accounting for approximately 23 percent of the project's cost.
Seat's subsidy will support the establishment of a battery assembly plant at its Martorell facility, where it will integrate supplied battery cells into ready-to-install battery packs for vehicle production. These cells will be sourced from the Volkswagen battery factory in Sagunt near Valencia, which received an investment of 300 million euros, with the Spanish government contributing 47 million euros, covering roughly one-sixth of the total cost.
The European Commission approved Spain's Perte subsidy program in May, which has a budget of 837 million euros and is aimed at companies involved in battery production, essential battery components, or raw materials. The program has already reached its application deadline on September 15, meaning no new projects can be submitted. However, funding commitments have now been awarded to previously submitted projects.
According to the Ministry of Industry, a total of 322 million euros in grants have been awarded, not including the 100 million euros in loans, representing more than 60 percent of the allocated funds for the August and September grant calls. These subsidies signify Spain's commitment to bolstering its battery industry and supporting the transition to electric mobility.