Reaction to the latest developments followed a tense day for the Volkswagen Group, Seat, and the broader electric and connected vehicle initiative. After discussions yesterday marked by discomfort within the sector and delays in activating the Perte VEC program, the government signaled renewed commitment. The Ministry of Industry, Trade and Tourism announced that the government would expand public support to 880 million euros, to be allocated under the Electric and Connected Vehicle Recovery and Economic Transformation Strategic Project known as Perte VEC. The move increases previously approved interim funding by nearly 300 million euros.
The sector now watches closely as manufacturers prepare to make official announcements. What began as a potential fix has evolved into a central point of contention amid yesterday’s upheaval, which saw Volkswagen Group, Seat, Cupra, and 62 other companies pause the plan to establish a battery plant in Sagunto. The final decision on Perte VEC is expected to dispel uncertainties, with partner firms urging the government to grant formal approval to move forward.
Prior to this expansion, the project requested substantial backing. Estimates place the battery plant at approximately 3 billion euros, with 1 billion earmarked for Landaben in Navarra (a project involving Volkswagen) and about 3,000 million for Martorell. The initiative, titled Future: Fast Forward, envisions mobilizing 10 billion euros in total investment. Volkswagen, Seat, and their allies repeatedly asserted that investments would proceed only if the program received formal authorization. The funding plan draws on efforts from 62 project partners and will also utilize Next Generation EU funds, with a portion flowing through government channels to support the initiative.
The increase in public funding was announced by Reyes Maroto during a gathering of the PERTE Maritime Industry Association in Vigo. The final scope of Perte VEC assistance is expected to be clarified soon. Maroto noted that the 880 million euros represents about 29.5% of the program’s overall budget, which totals roughly 2,975 million euros and accounts for nearly one-fifth of provisional publications for the initiative.
Looking ahead, the expectation is that a second call for PERTE VEC will be released in the first quarter of the following year. Officials indicated that the initial round of funds will not be exhausted, allowing for continued support and potential new rounds of funding to sustain progress in electric vehicle manufacturing and related supply chains.