This ambitious factory project will redefine Navalmoral de la Mata and the broader Extremadura region. It outlines a forward-looking plan for the town and the wider area, signaling Spain’s path toward a prominent role in electric vehicle manufacturing. The leadership has highlighted that two major gigafactories will anchor the country’s shift to battery-driven production, with Valencia and Extremadura seen as pivotal locations for establishing enduring electric car manufacturing capabilities across the national supply chain.
During a recent appearance at the Congress of Deputies, the head of government outlined the electric vehicle Perte program and emphasized that the two battery plants would be central to securing long-term manufacturing in Spain. The plan includes substantial investment in battery cell production from partnerships in Extremadura with Envision and Acciona, and in Valencia with Volkswagen and Seat. The Perte initiative closed its open call the previous week and set the stage for a series of projects presented in April. Data shared by the presidency showed the involvement of 13 groups, including major national manufacturers, proposing 487 projects with a total investment surpassing 12 billion euros. The aim is to modernize and electrify the entire value chain, including production lines and the broader supply network. The central government has positioned large battery facilities as the flagship elements of Perte, supported by funds from the rescue plan. Total aid for the effort exceeded 2.9 billion euros.
The president also noted that 60 percent of the autonomous communities participate in Perte, which he framed as progress in regional integration and development.
Perte in Extremadura
The principal Perte project for electric vehicle manufacturing in Extremadura centers on the collaboration between Acciona and the Asian group Envision. They announced a plan to establish what will become the region’s second battery factory for electric cars. The facility is planned to sit on roughly 200 hectares within the Expacio Navalmoral industrial zone in Navalmoral de la Mata. It forms part of the Venergy+ initiative, a consortium that includes several companies across nine autonomous communities and is designed to underpin Extremadura’s capital project in the energy transition.
Current projections describe a starting scalable capacity of 10 gigawatts, with ambitions to grow to 30 gigawatts in successive stages, adding 10 gigawatts in each phase. The project is expected to create around 3,000 jobs and attract more than 2,000 million euros in investment, including Perte funding, by 2025.
The Envision venture ties to lithium resources in Cáceres province, an area under consideration for exploitation through Spain’s Lithium Iberia initiatives, including the Cañaveral project and Extremadura New Energies (ENE). Approval processes for the Cáceres mining venture remain under review by the Junta de Extremadura, with environmental and visual impact considerations at the Sierra de la Mosca area influencing decisions. Efforts to advance the project must navigate potential municipal concerns while balancing regional economic benefits.
In Central Peru
Since the Perte announcement a year ago, national focus has shifted toward Extremadura due to the underground lithium presence. The administration highlighted that these projects could transform rural economic landscapes, aligning with European aims to reduce the auto sector’s carbon footprint and lessen dependence on Asian suppliers. Extremadura’s lithium reserves have drawn attention from industry insiders and policymakers alike, influencing the choice of sites for future gigafactories. While other locations, such as Sagunto, were considered in the early planning stages, logistical and labor considerations ultimately favored the Extremadura option for Perte’s flagship initiatives.
The Future: Fast Forward project, led by Volkswagen and Seat within Perte, also carries an Extremaduran signature through Lithium Iberia and Phi4tech activities to exploit the Cañaveral lithium deposits and to establish a battery cell plant in Badajoz, along with a cathode plant in a yet-to-be-specified Extremadura site. The holding group comprises a broad network of 62 companies, including the planned Sagunto gigafactory, which Extremadura has highlighted as a strategic asset. The debate among project proponents centers on whether earlier proposals were prepared before Perte’s arrival and how pre-financed rescue funds will be allocated to accelerate development across the region.
Ultimately, the overarching aim is to accelerate the modernization of Extremadura’s industrial base, expand local employment, and position the region as a key hub in Europe for battery production and electric vehicle components. The interplay between Perte’s financing framework and regional initiatives is expected to shape how quickly the supply chain becomes self-sustaining and globally competitive.