14:07 06-03-2026

EU supports Spain's battery production with €200 million state aid

The European Commission approves €200 million state aid for Spain to boost battery production, including cell manufacturing and recycling, under the EU's strategy to reduce reliance on Asian suppliers.

The European Commission has approved a €200 million state aid program for Spain, aimed at accelerating battery production development. This decision aligns with the EU's strategy to build its own battery industrial cluster and reduce dependence on Asian suppliers, particularly those from China.

The funds will support expanding production capacity, including cell manufacturing, recycling of secondary materials, energy storage technologies, and hydrogen solutions. The program offers direct subsidies to companies across the country, with applications accepted until June 30, 2026.

Spain already holds a significant position in the European EV production chain. PowerCo, part of the Volkswagen Group, is constructing a gigafactory in Sagunto, Valencia, while CATL is implementing a project at the Stellantis site in Zaragoza. The EU support is expected to strengthen Spain's role as a key hub for the battery industry in Europe.

This initiative supports the objectives of the Clean Industrial Pact and the European Green Deal, focusing on industrial decarbonization, reducing energy consumption, and promoting a circular economy.