There will be no PERTE funds for theNavalmoral de la Mata automotive industry giant factory. The initial interim screening has already excluded the Envision battery project in Extremadura, and after new documentation was provided, the project has now been strictly excluded from the state aid package aimed at accelerating the development of electric vehicles with European funds, according to local reports. Resources are being redirected away from this sector, and the setback is attributed to the project not meeting the Ministry of Industry’s conditions for the 3,000 million euro aid package. Other projects continue moving forward, such as Volkswagen’s proposed battery factory in Sagunto.
As the special release advances in its digital format, the Extremadura project’s sponsoring company has already received communications from the department led by Minister Reyes Maroto, and for now Extremadura is pressing ahead with its plans. It is possible that the group will pursue other financing avenues to advance a project considered crucial for Spain’s electrification efforts and for the industrial development of Extremadura. The plan includes beginning operations in 2025 with an investment of 1,000 million euros.
The company has consistently defended the Extremadura plans regardless of aid, and both the Spanish Government and the Junta de Extremadura have shown willingness to turn the large project into reality within the PERTE framework. In this context, on 18 July, joint support from both administrations was showcased during a ceremony at the Expacio Navalmoral industrial site where a general cooperation protocol with the Spanish Government was signed along with a memorandum of understanding between the supporting company and the Junta de Extremadura to promote the project. Participants included company representatives, the head of the group in Spain, the CEO of the group joining via videoconference, the regional head of government, and regional industrial and administrative leaders from Extremadura.
Alongside open enterprise support, the company has consistently indicated in its discussions with the Extremaduran authorities that the project could proceed even without direct funding, while not ruling out alternative financing instruments to make it happen.
The board has always signaled a decisive outcome for Navalmoral de la Mata.
The Gigafactory is regarded as a pivotal step in developing the lithium value chain in Extremadura and as a catalyst project capable of stimulating the regional electric vehicle industry. With an investment near 1,000 million euros and an estimate of about 1,000 direct jobs and 12,000 indirect jobs projected from 2025, the board argues that the necessary means will be found to bring this project to fruition.
Analysts noted that a firm commitment would emerge in Navalmoral de la Mata, following the interim decision not to approve the project. August brought renewed questions about the viability after Envision was omitted, yet there remained confidence that ongoing discussions with involved suppliers would address outstanding concerns. Officials stressed that the gigafactory could still proceed with or without external help, consistent with the company’s earlier assurances.
Outlook
Final decisions from the Ministry of Industry on PERTE are expected this week, with explanations about the exclusion. In the interim decision issued on July 28, the Ministry indicated that the Envision and Acciona initiative, known as Venergy+, which includes the Gigafactory, failed to meet PERTE’s minimum structural requirements and qualified as a funding source not a grant. The tractor project’s budget did not reach the minimum threshold of 10 million euros stated in the governing decision on the matter.
Envision announced plans to build a battery factory in Navalmoral de la Mata last June, a move announced two months after the initial Extremadura option was rejected. Volkswagen also announced its own battery cell mega-plant in Sagunto, in the Valencian Community.
Extremadura remained a contender in this race with the German group until the final stages, and a second gigafactory was announced with backing from the Chinese green conglomerate Envision and the Spanish Acciona. Early data indicated a 200-hectare footprint at the Expacio Navalmoral industrial estate in Navalmoral de la Mata, with initial investments of 800 million that later rose to about 1,000 million for a plant with 10 GW of scalable capacity, expandable to 30 GW in subsequent stages, potentially generating up to 3,000 jobs and attracting about 2,000 million in further investments in the future.
Officials in Extremadura have not confirmed or rejected information about PERTE until an official notification is received from the Ministry of Industry.