Spain has secured a decisive green light from the European Commission for an 837 million euro aid program aimed at bolstering battery production for electric vehicles. The plan, crafted by the government led by Pedro Sánchez, is described as necessary, adequate, and proportionate to speed up the ecological transition and to support key economic activities under the European Green Deal. Funding will come partly from recovery funds and will be delivered through a mix of grants and direct loans, aligning with broader EU objectives to accelerate decarbonization while preserving a level playing field in the single market.
According to the Commission, the €837 million Spanish program marks a significant step toward a net-zero emissions economy. It also reinforces fair competition within the EU’s internal market, a point echoed by Margrethe Vestager, the Vice President and Competition Commissioner, who underscored the plan’s consistency with EU rules and its contribution to timely ecological transition goals.
Brussels confirms that the measure meets the framework conditions set out for crisis response and transition. The aid is intended to stimulate the local production of equipment and technologies essential to the move toward net-zero emissions. A second tranche of support is planned to be awarded no later than December 31, 2025, ensuring a structured and transparent rollout of funding across the program’s lifetime.
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Assistance under the program appears well tailored to the needs of battery manufacturers, their core components suppliers, and related raw materials producers. The scheme caps the maximum aid per beneficiary for investments in the battery sector, with the upper limit ranging from 100 to 300 million euros depending on whether activities occur in regions eligible for cohesion funds. Investments specifically in core components face a cap of 100 million euros, while investments in raw materials are limited to 25 million euros.
The European Commission’s assessment concludes that the Spanish regime is appropriate for accelerating the ecological transition and for enabling EU governments to apply the flexibility offered by state aid rules. The framework used is aligned with the Interim Crisis and Transition Framework adopted on March 9 of the previous year, which allows targeted support in selected sectors critical to the transition to a net-zero economy. The decision was issued toward the end of March, reflecting a timely response to evolving market and policy conditions across the Union.