A shift aims the Extremadura gigafactory project back into the spotlight. The move is labeled temporary, yet it marks a setback for Turkey as the Ministry of Industry, Trade and Tourism makes a bold call. The envisaged plant near Navalmoral de la Mata is a centerpiece of Envision’s plan, with an emphasis on the Acciona Energía/Envision bid that led the pack for a portion of the 3,000 million PERTE funds designed to boost electric vehicle development.
Industry decision leaves Stellantis out of PERTE in Vigo’s smaller bid
The evaluation commission reached its verdict on July 28, followed by an interim proposal on August 1. For now, the ministry has left the plan under Envision’s administration unfunded. The rationale rests on two points: first, the tractor project does not reach the minimum PERTE criteria for aid eligibility; second, even with the primary projects meeting feasibility, the fundable budget does not meet the required threshold. Both reasons are treated as mutually exclusive grounds.
What happens next? If Envision seeks support, it may file objections. The ministry set a 10-day window for response, with a possible delay up to 15 days if a formal request is made.
The ministry stresses that the decision is temporary and part of the ordinary subsidy-grant process. In the coming weeks, the evaluation committee will review any responses and aim to issue a final decision within one to two months, typically between September and October. This ruling will determine which of the 13 PERTE proposals will receive assistance.
Industry announces a temporary PERTE funds distribution for Electric Vehicles
Alongside the PERTE allocations, Envision and Acciona could decide to carry the project forward and proceed with a self-funded investment of about 1,000 million at the Navalmoral de la Mata site.
“A gigafactory will be yes or no”
A gigafactory is seen as a strategic cornerstone for developing the lithium value chain in the region and for broader industrial growth. The Extremadura government moved quickly to address doubts about viability, with a spokesperson stating that a definitive commitment would come for Navalmoral de la Mata. After discussions with Envision, authorities signaled confidence that issues raised by the claims process could be resolved and that the project would not hinge on external funding alone.
The regional government noted that two weeks earlier an event at Navalmoral, attended by the prime minister and the industry minister, solidified the plan. The site visit and memoranda signed with national and regional authorities were designed to accelerate the project, targeting a horizon of 2025 with thousands of jobs. All notes remain active, the spokesperson affirmed.
González, a government spokesman, explained that the current PERTE process seeks objections and supporting documents from Envision, with the expectation that these will be supplied promptly. Envision and Acciona have been proactive in addressing the concerns and collecting the necessary materials to meet PERTE requirements.
Head of Government Pedro Sánchez endorsed the project during a Navalmoral de la Mata ceremony two weeks prior.
Officials suggested final PERTE decisions could come late September or early October, with confidence that the project would be present at PERTE’s conclusion and not hindered by the lack of PERTE aid. The Extremadura plan emphasizes lithium’s strategic importance, linking regional development to a key mineral resource.
Envision Spain acknowledged communication and interpretation challenges that contributed to the initial rejection. New leadership and renewed dialogue have aimed to resolve these issues, keeping the project on track.
More responses
The temporary exclusion of PERTE aid for a project tied to Extremadura’s industrial growth sparked a wave of reactions. A government delegate hoped September would bring positive news in the final decision.
Javier Peinado of the Extremadura Regional Business Confederation expressed cautious optimism, calling it a formal step that businesses routinely face. Skeptics from the regional opposition cautioned that the Gigafactory sounds like a recurring promise without immediate proof, while other regional voices urged patience as the rectification process unfolds.
The ultimate decision is expected between September and October. In addition to Envision, two other projects initially rejected remain under consideration, with one notable contender being a Volkswagen gigafactory in Sagunto, which could receive aid totaling 167 million.