Spain is gearing up to launch two new tenders worth €2 billion in July 2023 for the production of electric vehicles and batteries under its eMobility funding programme PERTE. In the first round of funding, Volkswagen received almost half of the funds. Jose Maria Lopez, the government official in charge of the funding programme, revealed to Reuters news agency that there will now be a double tender in July instead of two separate tenders in June and September. This represents an accelerated, more comprehensive push to promote the country’s electric vehicle industry.
The Volkswagen Group has already announced its intention to submit a new application to produce additional e-vehicles in Spain, and other carmakers such as Renault and Ford are also considering applying for the funding. Several potential battery cell factory projects, such as those by Tata Motors or Inobat Auto, also depend on the PERTE funds.
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The PERTE funding comes from last year’s funding pot of €877.2 million, of which only 27% was used. The reason was due to the strict requirements of the funding programme. However, Lopez stated that the requirements for applicants are now less strict compared to the first funding round. Projects can now also be submitted that will not be completed until 2028 and not just 2026. This is due to the fact that the funding comes from EU pandemic funds, which actually have to be invested by 2026, but the European Commission has now relaxed such requirements, probably mainly against the background of the Inflation Reduction Act in the USA.
The PERTE funding includes both grants and loans, with funding recipients having 40 or 60 months to put their production facilities into operation. Funding would be capped at €350 million for battery projects, depending on location, while electric vehicle projects would receive no cap. Companies that have received funds from the first PERTE programme must submit new projects. This is the case with Volkswagen, which was awarded almost half of the aforementioned PERTE sum in the autumn and, in turn, released €10 billion for large-scale electrification projects in Spain.
Speaking about the upcoming tenders, Jose Maria Lopez said, “We are looking for projects that are complementary, because we don’t want different companies producing the same parts of an electric car. We want to encourage the production of different parts in Spain.”
The move towards electric vehicles is seen as part of the country’s economic recovery and transformation strategy. Spain aims to become a hub for electric vehicle production and the PERTE funding programme is seen as a key part of achieving this goal. With the upcoming tenders, the country is hoping to attract more companies to invest in the electric vehicle industry and contribute to the country’s economic growth.
