By 2035, gasoline and diesel sales are set to end in Turkey and across Europe. The accelerated shift toward electric vehicles is clear, yet public hesitation persists due to price concerns and gaps in charging infrastructure. At the same time, regions tied to this transition have been racing to secure battery production capabilities, recognizing that battery factories are the keystone for safeguarding jobs and supplier networks as electromobility reshapes the industry.
Carlos Tavares, Marcelo Rebelo de Sousa, and António Costa were seen in Portugal, underscoring Stellantis’ footprint in the region. The impact of such moves reverberates through major automotive hubs, including Aragon, a region that has emerged as a pivotal arena in the race to attract large-scale investment in battery manufacturing. Aragon’s industrial ecosystem already demonstrates strength, with Stellantis’ factory in Figueruelas serving as a cornerstone. The region accounts for a meaningful share of Spain’s GDP, industrial employment, and exports, and it is frequently highlighted as an ideal site for gigafactory development due to its integrated supply networks and energy resources.
The contest for megafunding grew fiercer as Spain prepared to launch a second wave of Perte VEC subsidies aimed at encouraging gigafactory construction with public support. A substantial pool of unallocated funds from the original subsidy plan remains, with the central government set to activate a new line that could attract between 150 and 350 million euros per battery project when the call opens in June.
an intimidating competitor
The question looming over the bidding is who will win the prize. Tata Motors is among the strongest contenders eyeing Aragon as a potential site for a battery facility to equip its Jaguar and Land Rover electric models. The relationship between the ministry and the regional government remains active, including site visits around Zaragoza that could host a facility of this scale.
The decision appears highly strategic, with the British side enjoying several advantages. Both brands depend on the location for their battery supply, and historical ties with India, a member of the Commonwealth, add a layer of geopolitical depth. Even the political leadership, including the prime minister, has framed the scenario as a competitive process among Atlantic partners with long-standing connections.
The region’s robust renewable energy capacity is a major benefit for Aragon’s candidacy, strengthening its appeal as a sustainable, long-term hub for gigafactory operations. This advantage weighs against competitors outside the European Union and aligns with government priorities when evaluating where to anchor such critical battery capacity.
The other major project in consideration involves an automaker with deep roots in Aragon: Stellantis. Although it may not be a quick decision, there is a realistic possibility of a gigafactory development on the Iberian Peninsula. In recent discussions, the group’s leadership signaled progress and expressed intent to decide before year-end, reflecting the ongoing deliberations among European stakeholders.
In sessions with national leadership, top executives stressed the importance of a competitive package that balances energy availability, labor costs, and a comprehensive framework of incentives. Spain’s strategy includes Perte VEC provisions and the proximity of Stellantis and other industrial centers on the peninsula, as well as opportunities to leverage renewable energy projects as part of the incentive mix. The conversation also touched on the broader strategic value of regional links to energy networks and manufacturing clusters across Iberia.
Aragon’s position as a frontrunner
From the Spanish perspective, Aragon stands out as a prime candidate for Stellantis’ substantial investment, with other European contenders in the mix. While specific commitments are not yet on the table, regional authorities remain vigilant and ready to engage with all major players, including Tata, to advance the most favorable outcomes for the region’s economic future.
Aragon’s long-standing dream of hosting a major battery plant has intensified the conversation about a broader European battery strategy. The hope is that a flagship project could anchor Spain’s ambitions in the battery value chain, complementing related initiatives in Sagunto and nearby industrial clusters. The expected timeline anticipates progress toward realization in the coming years, reflecting the maturity of plans across the sector.
Beyond Aragon, other Perte Vec proposals include Acciona in Extremadura together with Chinese Envision and Slovak Inobat in Valladolid. Chinese EV maker BYD and other international players have also signaled interest, illustrating the wide geographic scope of the continent’s battery ambition.