Spain has approved a €133 million ($146 million) subsidy to support Stellantis in potentially establishing a battery production facility near Zaragoza, according to Industry Minister Jordi Hereu.
The funding, part of a broader government initiative using European Union pandemic relief resources, aims to enhance Spain’s position as a key player in the electric vehicle (EV) and battery industries.
Stellantis, which owns brands such as Fiat and Peugeot, is still evaluating the decision to build the battery plant, also known as a gigafactory, near its existing car production site in Figuerelas.
The project, developed in collaboration with Chinese battery giant CATL, is projected to create approximately 3,000 jobs and entail an investment of nearly €2.5 billion.
While Stellantis has welcomed the Spanish government’s financial commitment, a spokesperson emphasized that the project remains contingent on regulatory approvals, and official announcements will be made in due course.
With this latest subsidy, the Spanish government has provided Stellantis with nearly €300 million in total aid. Additionally, the Industry Ministry announced an increase in funding for Volkswagen’s PowerCo battery project in Sagunto, raising its subsidy to €152 million from an initial €98 million.